GST record keeping NZ: keep records for 7 tax years

Why GST record keeping matters

Good records are how you prove output tax on sales, input tax on purchases, and the net GST you file in myIR. IRD uses your records to check returns during ordinary reviews and audits. If you cannot produce readable evidence within the retention period, you risk disallowed claims, reassessments, penalties, and interest.

Record keeping sits alongside registration, charging 15% GST, and filing on time. If you are new to the cycle, start with how to register for GST in NZ and how to file your GST return in myIR. For day to day add or remove maths while you check documents, use the free GST calculator.

The 7 tax year rule

On IRD record keeping, the core rule is simple: keep all your records throughout the year, including records in electronic form, for at least 7 tax years. IRD repeats the same period on its income and expense records page and on computer record keeping for audit guidance. Paper and digital media follow the same clock.

That period applies to GST supporting documents, filed returns, bank evidence, and accounting system history. It is an IRD tax rule, not a separate Companies Act filing rule. Do not assume a company can destroy GST evidence earlier because another statute mentions a different period unless IRD confirms it for your situation.

What counts as a tax year

In New Zealand a standard tax year runs from 1 April to 31 March. When IRD says 7 tax years, it means seven of those periods, not seven calendar years from today’s date.

Example: records for a supply in August 2024 fall in the 2024/25 tax year (1 April 2024 to 31 March 2025). You would normally keep that evidence until at least the end of the 2031/32 tax year unless IRD tells you otherwise for a specific case. Your accountant can confirm the exact destroy date for archived files.

What GST records you must keep

IRD’s record keeping hub tells businesses to keep records of cash and non cash sales and expenses. For GST that translates into evidence for both sides of every return.

• Sales and income: invoices, point of sale data, contracts, till summaries, export or zero rated documentation, and supply correction information when prices change.
• Purchases and expenses: supplier invoices or other taxable supply information, receipts, import entries, credit card and bank lines that match claims.
• Bank records: statements that clearly show money in and out of business accounts, as IRD describes on its bank records page.
• GST returns: copies of what you filed in myIR, working papers, and payment confirmations.
• Accounting files: general ledger, journals, and subsidiary ledgers if you use software, especially if IRD may run a computer assisted audit.

You can build compliant seller documents with the GST invoice generator, but the generator output is only one part of your file. You still need bank reconciliation and retained copies of what you sent buyers.

Taxable supply information from 1 April 2023

From 1 April 2023, IRD’s taxable supply information rules replaced the old focus on a single tax invoice document. GST registered businesses must keep taxable supply information for goods and services they buy and sell. The definition of a taxable supply and how you calculate 15% GST did not change. Only invoicing and record keeping mechanics changed.

You no longer need one physical tax invoice as the only proof. Invoices, bank statements, supplier agreements, contracts, and accounting exports can work alone or in combination. Value bands still matter: $200 or less; more than $200 and up to $1,000; and more than $1,000 each need different fields. Sellers must provide taxable supply information to GST registered buyers within 28 days of a request for supplies over $200.

Full threshold tables, buyer identifiers, and supply correction information sit in our dedicated taxable supply information NZ guide and supply correction information NZ guide. This page focuses on how long and how safely to retain whatever format you use.

Electronic records, cloud storage, and offshore hosting

Electronic records count the same as paper. IRD expects them to confirm your tax liability, contain the information the law requires, stay in English or te reo Māori unless IRD approves another language, and remain retrievable and readable at all times. Good backups help meet that last point.

If you store records offshore, including in cloud computing, either you or your cloud service provider must have IRD approval. IRD’s Tax Technical material on the 2013 GST record keeping changes explains that the obligation stays with the registered person even when a host holds the files. Check whether your accounting platform or document vault is on IRD’s approved provider list before you rely on it for the full 7 tax years.

When you upgrade accounting software, IRD’s computer audit guidance says you must confirm the new system can still retrieve and read data from the old system, or budget to convert or print legacy data before you decommission the old environment.

eInvoicing and automated exchanges

IRD treats automated direct exchange between buyer and seller software, such as PEPPOL eInvoicing, as a valid way to provide taxable supply information. eInvoicing is still record keeping: the payload your system sends or receives must be stored with the rest of your GST evidence for 7 tax years. IRD publishes an eInvoicing page under record keeping, and the New Zealand Government eInvoicing site covers network setup.

Whether you email PDFs or use eInvoicing, the test is the same at audit time: can you show who supplied what, when, for how much, and what GST was charged or claimed?

GST record keeping best practices for NZ businesses

IRD publishes Record keeping checklist IR1008. Use it as a working template, then add GST specific habits:

• Capture documents when the transaction happens, not at year end.
• Name files with date, supplier, and amount so staff can find them later.
• Reconcile bank feeds to GST returns each taxable period.
• Store supply correction information beside the original sale or purchase record.
• Keep zero rated and export evidence separate, as Business.govt.nz also recommends for GST returns.
• Review cloud provider approval and backup restores at least once a year.
• Do not delete user accounts that hold historical PDFs when staff leave.

Broader compliance steps for new operators are in the GST Basics Guide category. Common filing errors that trace back to missing documents are covered in 10 common GST mistakes in NZ.

Lost, destroyed, or damaged records

Fire, theft, ransomware, or a failed migration can wipe files. IRD’s lost, destroyed, or damaged records page explains how to respond. Tell IRD promptly, rebuild what you can from bank statements, supplier copies, and payment platforms, and document your reconstruction steps. Going forward, fix the backup gap that caused the loss.

Common GST record keeping mistakes

• Keeping bank statements but not the underlying taxable supply information for large purchases
• Assuming Xero or MYOB retention settings automatically meet IRD’s 7 tax year duty
• Using offshore cloud storage without provider approval
• Destroying records when deregistering GST while other tax years are still open
• Keeping only the buyer’s copy of supply correction information, not the seller’s
• Relying on a document title instead of checking the required fields for the value band
• Mixing private and business cards with no allocation notes for shared expenses

If missing records already led to a late return or late payment, estimate exposure with the late GST penalty calculator.

FAQs

How long must I keep GST records in New Zealand?

At least 7 tax years, including electronic records, unless IRD tells you otherwise for a specific situation.

What is a tax year for record keeping?

1 April to 31 March. Count seven of those periods from the tax year the record belongs to.

Can I store everything in Google Drive or Dropbox?

You can use cloud tools if records stay readable and you meet IRD’s offshore storage approval rules when data sits outside New Zealand.

Do I still need the words Tax Invoice on PDFs?

No. IRD focuses on taxable supply information content. Many businesses keep the familiar Tax Invoice heading anyway because buyers expect it.

What if I only accept card payments with no paper invoice?

Combine your point of sale or eCommerce receipt, settlement report, and bank deposit so the full taxable supply information is recoverable later.

Sources and verification

Last full check: 28 August 2026. This page was matched to IRD record keeping, records of income and expenses, bank records, computer record keeping for audit, eInvoicing, lost destroyed or damaged records, taxable supply information for GST, how taxable supply information works, GST guide IR375, and the Goods and Services Tax Act 1985 on legislation.govt.nz.

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