Quick Summary
From 1 April 2023, the requirements for debit and credit notes have been replaced by the need to provide and keep 'supply correction information'. This new method is used to adjust errors made in previously issued taxable supply information or incorrect amounts included in a GST return.
Details
Supply Correction Information: The New Process
The way businesses correct errors related to GST in New Zealand changed on 1 April 2023. The previous system of using debit and credit notes to adjust tax invoices has been superseded by 'supply correction information'.
- When it's required: Supply correction information must be issued in situations where:
- The original 'taxable supply information' (e.g., an invoice) contained an incorrect amount of GST.
- The seller included an incorrect amount in their GST return for a taxable supply they made.
- Purpose: It ensures that any adjustments to previously reported GST amounts are properly documented and can be verified by the IRD.
- Details: For more specific information on what must be included, refer to IRD's official guidance.
Source: GST guide (IR375)