GST time of supply NZ: invoice or payment, whichever is earlier
Time of supply gst nz is the date GST Act 1985 section 9 treats a supply as happening. It is not the clock time you clock on, and it is not when the tradie finishes the job unless a special rule in section 9 says so.
Time of supply under gst is a timing rule. GST Act 1985 section 9(1) deems a supply of goods and services to take place at the earlier of the time an invoice is issued by the supplier or the recipient, or the time any payment is received by the supplier, in respect of that supply. Section 2 says invoice means a document notifying an obligation to make payment. Time of supply gst is that deemed date. Time and value of supply are separate: section 10 then values the supply, usually the money consideration plus GST so the GST exclusive amount plus 15% equals the GST inclusive total.
GST time of supply rules do not wait for physical delivery unless section 9 says they do. Inland Revenue IS 10/03 calls section 9(1) a timing only provision. There must already be a transaction giving rise to a supply. This is not tax advice. Figures are working papers from the Act and Inland Revenue.
The section 9(1) test
Whichever happens first: an invoice issued by the supplier or the recipient, or any payment received by the supplier. That is gst time of supply. Category: Advanced GST Rules.
Time of supply rules: invoice versus any payment
Time of supply rules pick the earlier event. GST time of supply rules nz do not use “when the work is done” as the default for ordinary sales.
Invoice first
If you issue an invoice before any money arrives, that issue date is the time of supply. A recipient created invoice can also trigger it. Inland Revenue IS 07/02: a standard form agreement for sale and purchase of property is not an invoice, even if it later goes unconditional.
Payment first
If any payment is received by the supplier first, that receipt date is the time of supply. IS 10/03: a deposit is any payment. Inland Revenue’s calculating GST page: on invoice or hybrid basis, include the full sale price if customers have paid any amount before you have invoiced them.
GST time of supply is not your accounting basis
Time of supply in gst fixes the deemed date. Your GST accounting basis then decides what goes on that period’s return. Inland Revenue’s accounting basis page (last updated 12 August 2026): payments basis is available if total sales are $2 million or less in the last 12 months, or likely $2 million or less in any 12 month period beginning on the first day of a month. Invoice basis is available to anyone. Hybrid uses invoice for sales and payments for expenses.
| Basis | What Inland Revenue says you include |
|---|---|
| Invoice or hybrid (sales) | Amounts you have notified customers to pay by invoice, even if you have not been paid yet, and the full sale price if customers have paid any amount before you have invoiced them. |
| Payments | Amounts you have been paid by customers. Claims on purchases still need taxable supply information. |
Walkthrough: invoice basis vs payments basis. Issue the document that can trigger section 9(1) with the GST invoice generator. Add or remove 15% with the GST calculator.
Time of supply of goods and time of supply of services under gst
Time of supply of goods and time of supply of services under gst use the same section 9(1) default. New Zealand does not copy India’s extra “completion of service” date as the ordinary rule. Special rules still sit in later subsections.
| Situation | Section 9 timing |
|---|---|
| Associated supply of goods to be removed | Time of removal, unless an invoice is issued or payment is made on or before the last day for furnishing the return for the period in which the supply would otherwise have been made (s 9(2)(a)). |
| Associated supply of goods not removed | When they are made available to the recipient, same proviso. |
| Associated supply of services | When the services are performed (unless s 8(4B) imported services timing in s 9(2)(a)(iv) applies), same proviso. |
| Door to door (s 5(4)) | The day after the last day of the Fair Trading Act 1986 s 36M cancellation period. |
| Layby (s 5(5)) | When property in the goods is transferred to the recipient. |
| Hire, lease, periodic services | Successive supplies. Each takes place when a payment becomes due or is received, whichever is earlier (s 9(3)(a)). |
| Progressive goods or construction instalments | Each successive supply when payment becomes due, is received, or an invoice relating only to that payment is issued, whichever is earlier (s 9(3)(aa)). |
| Hire purchase | When the agreement is entered into (s 9(3)(b)). |
| Token, stamp, or voucher (s 5(11G)) | When it is redeemed (s 9(2A)). |
Associated persons detail: associated persons GST. Hire agreements: GST hire purchase and leases. Progress claims: GST on deposits and progress payments and construction retentions.
Deposits, stakeholders, and quotes
IS 10/03: before section 9(1) applies, there must be a transaction giving rise to a supply. A deposit received by the supplier under a contract triggers time of supply. A stakeholder holds for both parties. A person cannot declare themselves a stakeholder unilaterally. The supplier can be a stakeholder if all parties agree. IS 25/23: payment to a stakeholder is not received by the supplier until the stakeholder pays it to the supplier or holds it only for the supplier’s benefit, for example once an agreement becomes unconditional.
A quote is not automatically an invoice. Section 2 requires a document notifying an obligation to make payment. Taxable supply information is the record set from 1 April 2023. Inland Revenue: for supplies over $200, taxable supply information must be provided to GST registered buyers within 28 days of a request, or by an agreed alternative date. Where no invoice is issued, the date field is the time of supply. Records: taxable supply information.
Use case: Tauranga plumber, invoice basis
Situation: Hypothetical GST registered sole trader. Customer pays a deposit. No invoice yet. GST: Inland Revenue’s calculating GST page says include the full sale price if any amount is paid before you invoice. Action: Do not wait until the job is finished to think about the return. File in myIR for the period that includes that receipt.
Use case: Hamilton land sale, stakeholder
Situation: Hypothetical Ltd sells land. Deposit sits with the solicitor as stakeholder. No invoice. GST: IS 10/03 and IS 25/23: no receipt by the supplier yet. IS 07/02: the sale and purchase agreement is not an invoice. Action: Watch when the stakeholding ends. Compulsory zero rating of land is a different file: zero rating of land transactions.
GST plus IR546 (2025 edition opened this run): if you are paid in a foreign currency, convert using the exchange rate for the date of the GST time of supply. Exports: Inland Revenue’s zero rated supplies page (last updated 22 June 2026) says goods entered for export must be exported within 28 days of the time of supply unless Inland Revenue agrees an extension. Guide: exporting goods from NZ.
Pull highlight: Identify the supply first. Inland Revenue IS 18/04 (issued 13 September 2018) is about whether you have one supply or several. IS 10/03: section 9 only times a supply that already exists. Do not split one contract into fake slices just to move GST between periods.
Lead time, elasticity, and time of supply under vat
Meaning of lead time in supply chain is how long stock or a job takes to arrive. Impact of lead time in supply chain and importance of lead time in supply chain are operations questions. GST time of supply can fall on the deposit date while the physical lead time is still weeks away. How does elasticity of supply change over time is economics. It is not section 9.
Time of supply under vat is foreign wording. New Zealand charges GST, not VAT. Do not import Indian, Singapore, or UK VAT time of supply tests (for example a separate completion of services date) as if they were GST Act 1985 section 9.
Quotes that pretend to be invoices
Geekzone threads ask whether a quote can say it becomes a tax invoice on acceptance. Section 2 still needs a document notifying an obligation to pay. Issuing that document can be the invoice limb of section 9(1). A labelled quote that does not notify an obligation to pay is not that document. From 1 April 2023 the record name is taxable supply information. You may still title a PDF tax invoice.
FAQs
What is the GST time of supply in New Zealand?
GST Act 1985 section 9(1) says a supply of goods and services is deemed to take place at the earlier of the time an invoice is issued by the supplier or the recipient, or the time any payment is received by the supplier, in respect of that supply. GST time of supply rules sit in section 9. Your accounting basis then decides how much of that supply you put on the GST return for the period.
Does a deposit trigger GST time of supply?
Yes, if the supplier receives the deposit in respect of a supply. Inland Revenue IS 10/03 (issued 4 June 2010) says a deposit constitutes any payment, and that applies to conditional or unconditional contracts. If the money is held as stakeholder, there has been no receipt by the supplier and time of supply is not triggered. IS 25/23 (issued 11 November 2025) repeats that stakeholder holding is not payment until the amount is paid to the supplier or held only for the supplier’s benefit.
Is this the best time of day to pump to increase milk supply?
No. Searches for best time of day to pump to increase supply, best time of day to pump to increase milk supply, what time of day is milk supply highest, and what time of day is milk supply low are lactation questions. This page is gst time of supply under the Goods and Services Tax Act 1985. It is not a feeding guide.
Read GST Act 1985 section 9, Inland Revenue IS 10/03, IS 25/23, accounting basis, calculating GST, and taxable supply information. Publisher path: About Us and Contact Us.
Last verified 5 September 2026 against GST Act 1985 sections 2, 9, and 10, IS 10/03, IS 07/02, IS 18/04, IS 25/23, Inland Revenue accounting basis (12 August 2026), calculating GST (14 April 2025), taxable supply information (31 March 2026), zero rated supplies (22 June 2026), and GST plus IR546 2025. Ads may fund this free site. Not tax advice. Figures are working papers, not an Inland Revenue assessment.