New Zealand to launch eInvoicing for all agencies by 2026

The New Zealand Government has announced a significant plan to implement eInvoicing across all government agencies.

The initiative aims to streamline the nation's payment systems through faster processing times and improved financial accuracy. As of 2025, government agencies will begin the process of adopting eInvoicing, with a full operational rollout expected by 1st January 2026. This transition is anticipated to reduce administrative delays and cut costs linked to traditional invoicing methods.

"The 33 central government agencies send and receive 1.6 million invoices annually, with the total number for all 135 government agencies likely many more millions. Prompt payment is especially important for small businesses which have limited cash reserves – an unpaid or late invoice can be the difference between being able to pay staff on time or not," said Andrew Bayly, Small Business and Manufacturing Minister.

He further elaborated on the crucial role small businesses play in New Zealand's economy, stating, "Given 97 per cent of all businesses in New Zealand are small businesses, it is crucial for our broader economic success that government agencies pay their invoices quickly. This eInvoicing initiative is not just a technological upgrade; it's a financial lifeline for the many enterprises that form the backbone of our economy."

The government's strategy for faster payment processing is expected to bring about several benefits, including reduced payment cycles, fewer errors, and a predictable cash flow for businesses interacting with government entities. Early adopters of eInvoicing may also gain a competitive edge by aligning with these new standards.

Link4 New Zealand, a provider of Peppol-accredited eInvoicing solutions, stressed the importance of adapting to this new invoicing environment. Robin Sands, CEO of Link4 New Zealand, remarked, "This sends a strong message about the future of invoicing—a future where faster payments, efficiency, and accuracy are paramount." He highlighted that Peppol eInvoicing sets a standard that enhances both reliability and interoperability, key factors in New Zealand's aim for operational excellence.

Under the revised Procurement Rules, it is required that government agencies process eInvoices within five business days, a significant improvement over the former target of settling 95% of invoices within ten business days. This reform places New Zealand at the forefront of modernised payment practices, setting a benchmark for efficient and secure invoicing systems.

Peppol eInvoicing is presented as a global standard central to New Zealand's eInvoicing framework. The standard's international recognition could enable seamless, interoperable invoicing practices that align with best practices worldwide. Moreover, the secure nature of the Peppol network substantially mitigates the risks of fraud and lost invoices, promising greater transparency in financial transactions.

Tim Findlay, Head of Link4 New Zealand, pointed out the broader impact on the business community. "Businesses across New Zealand stand to gain from this transition to Peppol eInvoicing," Findlay noted. "The adoption of a secure, interoperable network means not only faster payments but also a reduction in administrative workload and an increase in transaction accuracy. This system ensures businesses of all sizes can rely on efficient and streamlined payment processes, strengthening overall economic productivity."

Discussions are also underway regarding extending these requirements to suppliers, aimed at fostering a unified invoicing approach across the local economy. Encouraging suppliers to adopt Peppol standards could lead to widespread benefits, including smoother transactions and a culture of prompt payments.

With the adoption deadline approaching, businesses are being encouraged to review their invoicing systems and make the necessary updates to comply with Peppol standards. Early compliance will not only ensure adherence to regulations but also facilitate smoother business operations in the future.