Quick Summary
Supply correction information is the documentation required from 1 April 2023 to rectify errors in previously provided 'taxable supply information' or incorrect GST amounts reported in a return. It replaces the old system of debit and credit notes, ensuring proper adjustments for GST discrepancies.
Details
What is Supply Correction Information?
Supply correction information is a critical component of New Zealand's updated GST framework, introduced on 1 April 2023. It serves as the formal method for correcting inaccuracies related to GST transactions.
- Primary Function: To amend instances where the original 'taxable supply information' (such as an invoice) reported an incorrect GST amount.
- Addressing Return Errors: It is also used when a seller has incorrectly stated an amount in their GST return for a taxable supply they've made.
- Replaces Old System: This new requirement effectively replaces the traditional use of debit notes and credit notes for GST-related adjustments, making the process more streamlined and aligned with modern accounting practices.
Source: GST guide (IR375)