An important update from the eInvoicing team at
the Ministry of Business, Innovation and Employment
Driving efficiency and support to small businesses
In late 2024, the New Zealand Government introduced new requirements for prompt payments and eInvoicing under the Government Procurement Rules. These updates require government agencies that send or receive more than 2,000 invoices annually to adopt Peppol eInvoicing and pay eInvoices within five business days by January 2026.
The move is designed to drive efficiency, improve cashflow, and set a strong example for fair and timely payments across the wider business community.
What’s changing
Recent updates to the rules go a step further. They strengthen expectations around payment times and broaden eInvoicing adoption to include large suppliers.
Under the revised rules, government agencies will be required to:
Ensure suppliers pay subcontractors on government contracts on terms no less favourable than those they receive from government.
From 1 January 2027, require large suppliers (entities with total annual revenue over $33 million, including subsidiaries) to send eInvoices.
These changes mean the government will continue to lead by example in supporting better payment practices for suppliers and subcontractors throughout New Zealand.
Why it matters for Bookkeepers and small businesses
For Bookkeepers and business owners, this shift signals the growing importance of digital efficiency. As more government and large-scale entities move to eInvoicing, it becomes essential for smaller businesses to follow suit – ensuring seamless transactions and faster payments.
Adopting eInvoicing brings tangible benefits, including:
Faster payment processing
Time savings through automation
No more lost invoices
Reduced risk of invoice fraud
Better cashflow and stronger client relationships
The wider the adoption, the greater the collective benefit to New Zealand’s economy.
Are you ready for eInvoicing?
If you or your clients are still sending emailed PDF invoices, now’s the time to switch. Moving to Peppol eInvoicing helps future-proof your processes and ensures compliance as these new requirements roll out.
