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For some industries, it's more convenient for the person who receives the goods to determine:

• the value of a supply, and
• the amount to be charged for it.

In this case, the recipient will provide the necessary information for the invoice and issue a buyer-created tax invoice.

Example

Freezing works issue buyer-created tax invoices to farmers who supply stock. The freezing works weigh, slaughter, and price the animals, as well as determine other costs like levies. They are best able to provide the necessary information on the invoice.

Conditions of a Buyer-Created Invoice

A buyer-created invoice can be issued if both the supplier and the recipient:

• are GST-registered persons
• have agreed that only the recipient will supply the invoice, and
• keep a copy of the invoice.

Important

You can only issue buyer-created tax invoices if we've given you approval to do so. You'll need to apply to us in writing to get the necessary approval.

We can cancel our approval at any time if you don't meet our standards for invoices.

Application to Use Buyer-Created Invoices

Your application will need to show us you meet the conditions above. You'll also need to provide us with details of:

• why the supplier isn't in a position to determine the values of supply
• the special circumstances under which the recipient is in a better position to determine the value of supply, and
• a particular type of supply provided, or a list of proposed suppliers and their IRD numbers.

You'll also need to include in your application a proposed invoice. The buyer-created invoice must show:

• the standard information a tax invoice must show
• the supplier's GST number (if both parties are providing supplies, show both GST numbers)
• 15% GST added to gross supply
• 15% GST added to deductions or charges (GST credits), and
• the words "Buyer-created tax invoice - IRD approved" in a prominent place.

The recipient can use this buyer-created tax invoice to support a claim for the GST paid.