Government introduces stronger eInvoicing requirements: what you need to know

The New Zealand Government is making good on its promise to improve payment times for small businesses and accelerate eInvoicing adoption across government organisations and businesses. This month (November 2024), the NZ Government introduced new Government Procurement Rules (Rules 51 and 51A) to improve payment times and promote the adoption of e-invoicing among businesses and government agencies.

These changes are set to make a huge difference with how businesses and government entities handle invoices and demonstrate efficiency, transparency, and financial stability across the board.

For a detailed breakdown of these changes, check out the government’s official announcement, "Government introduces stronger requirement for eInvoicing in NZ."

What’s changing?

Under the updated rules, government agencies will need to:

• Implement eInvoicing send capability for agencies issuing more than 2,000 domestic trade invoices annually by 1 January 2026.
• Implement eInvoicing receive capability for agencies receiving more than 2,000 domestic trade invoices annually by the same date.
• Ensure 95% of eInvoices are paid within five business days, with reporting to MBIE.
• Starting 1 January 2025, all other invoices must be paid within 10 business days.

For a complete list of affected agencies, refer to Review mandated and eligible agencies. 

Why eInvoicing Matters for Businesses

For businesses trading with government organisations, these updates provide significant benefits:

• Faster Payments - improved cash flow through reduced payment processing times.
• Accurate Transactions - eliminates lost or erroneous invoices via digital systems.
• Enhanced Security - provides better protection against fraud.
• Sustainability - promotes eco-friendly operations by reducing paper invoices.

Are you ready for eInvoicing?

Cumulo9’s eInvoicing solution is designed to help businesses adapt to these changes seamlessly. Our platform offers seamless integration with existing systems, expert setup support, and advanced security.

Developers can find resources to stay compliant with the new standards here. 

Stay informed

To understand the government’s vision and next steps, read the Minister's press release. These changes represent a significant step forward in streamlining payment processes and ensuring timely transactions for businesses.

Feel free to contact us at Cumulo9 for help with integrating eInvoicing for your business.