Extended mandate for B2G e-invoicing with 10-day settlement commitment
New Zealand’s government is to increase the range of government agencies that must receive and issue structured Peppol e-invoices by 2026. And to encourage businesses to gear-up for this change, they will be guaranteed faster settlement in any invoices.
New Zealand, in cooperation with Australia e-invoicing, has adopted Peppol PINT standard.
2026 Wider B2G e-invoicing mandate
On 5 November 2024, New Zealand’s Economic Development Minister Hon Melissa Lee and Small Business and Manufacturing Minister Hon Andrew Bayly announced a critical rewrite of Rule 51 in the Government Procurement Rules, marking a significant step towards expanding e-invoicing capabilities across government agencies.
This regulatory update mandates that, by 1 January 2026, a larger set of government agencies—including ACC, Waka Kotahi, Health NZ, and NZ Police—must be equipped to send and receive e-invoices and are required to pay 95% of domestic trade e-invoices within five business days. This update complements existing commitments by New Zealand’s public sector to accelerate payment timelines and modernize financial transactions, thus supporting improved cash flow for businesses, particularly small and medium-sized enterprises (SMEs).
Accelerated payments for e-invoices
The updated procurement rules will be implemented in two phases, with faster payment obligations starting 1 January , 2025. In this phase, around 135 government agencies will be required to settle 90% of all domestic trade invoices within 10 business days, a threshold that will increase to 95% by 1 January, 2026. The revised rule extends beyond central government agencies, which already adhere to similar accelerated payment standards, to encompass a wider array of public entities, fostering a more consistent and transparent invoicing framework.
To encourage broader implementation, the government plans to consult businesses on the potential for requiring certain government suppliers to submit e-invoices as part of the procurement process. Outcomes of these consultations, expected by February 2025, could further shape future adoption guidelines. The MBIE has also made available a directory of eligible public agencies to support businesses in aligning their invoicing practices with the updated requirements.
This comprehensive shift in New Zealand’s procurement policies underscores a commitment to advancing digital transformation within government operations. By prioritizing rapid e-invoicing and payment processing, New Zealand aims to enhance efficiency and transparency within the public sector while delivering tangible economic benefits to the broader business community, laying a foundation for streamlined, digitally-integrated government procurement.
