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What is eInvoicing? How it works and how to set it up.

With the advancement of information technologies, we are always seeing new tools come out for businesses to utilise. These new tools have two purposes; to reduce our impact on the environment, and increase the productivity and security of our processes.

What is eInvoicing and do you have to do it?

It’s essentially the same as the Xero-to-Xero invoicing system but it uses the ‘Peppol’ framework/network which the government has officially adopted to communicate between any eInvoicing capable accounting software, such as Xero or MYOB.

It’s currently only mandatory for central government organisations, but this will change as it becomes more widely used. MBIE are currently in the ‘encouraging people to adopt it’ phase.

So this means that NO, you don’t have to do it yet, unless you are billing government agencies.

How it works

eInvoicing is the digital exchange of invoice information directly between buyers’ and suppliers’ financial systems, even if these systems are different. This automatic process cuts out the need for paperwork, and allows you to manage your bills and invoices from inside your chosen financial system.

How to set it up

There are two main things needed when becoming eInvoicing capable:

  • Your NZBN - which you can find by searching up your company in the Companies Register.

  • eInvoicing capable software, such as Xero. You can check if your software is compatible in this list.

We have recorded a short video on the process of setting up eInvoicing within Xero:


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