E-invoicing Could Save Kiwi Businesses $800 Million a Year

The next stage of the programme will begin on 1 January 2027, when large businesses supplying government agencies will be required to send eInvoices.

New Zealand businesses are being encouraged to embrace eInvoicing as new research points to major productivity gains, with the Government estimating the digital system could deliver up to $800 million in annual savings once it becomes widely used across the country.

Small Business and Manufacturing Minister Cameron Brewer said the number of businesses registered to receive eInvoices has surged from 52,000 to around 113,000 over the past year, showing growing confidence in a system designed to simplify payments and reduce paperwork. Unlike traditional invoices that rely on emails, PDFs or paper copies, eInvoicing allows invoices to move directly between accounting software platforms. This removes the need for manual data entry, lowers the risk of errors and helps businesses receive payments more quickly.

For many small businesses, maintaining healthy cash flow is one of the biggest day-to-day challenges. Faster invoice processing can shorten payment times, reduce administrative work and provide greater protection against invoice fraud and scams, giving business owners more time to focus on running and growing their operations.

Research highlights major productivity gains

According to new research from the New Zealand Institute of Economic Research (NZIER), businesses can save at least 16 minutes on every invoice, which translates into an average saving of about NZ$11 per invoice simply by adopting eInvoicing. Those individual savings add up quickly for businesses that process large numbers of invoices throughout the year, creating the potential for nationwide productivity gains worth hundreds of millions of dollars annually. The Minister said many businesses using cloud-based accounting software already have access to eInvoicing and only need to activate the feature, making it one of the easiest productivity improvements available without requiring major investment in new technology.

Government expands digital invoicing push

The Government is also adopting the system across its own operations while continuing its focus on prompt payments. Government agencies are expected to pay 95 percent of invoices within 10 working days, and during the last quarter, they exceeded that goal by paying 95.9 per cent of more than 1.6 million invoices on time. Officials say prompt government payments help money circulate more quickly through the economy, benefiting contractors, subcontractors and small businesses that depend on steady cash flow.

The next stage of the programme will begin on 1 January 2027, when large businesses supplying government agencies will be required to send eInvoices. New rules will also require subcontractors working on those contracts to receive payment terms that are no less favourable than those offered to the larger companies. The Government believes wider adoption of eInvoicing will make doing business easier, improve payment practices across supply chains and strengthen productivity by reducing unnecessary administrative work.