Written by Sumit Yadav
From January 1, 2027, large suppliers defined as entities (including subsidiaries) with total annual revenue exceeding NZD $33 million must send eInvoices when billing government agencies. This requirement applies to all businesses trading with government organizations and is designed to accelerate eInvoicing adoption across the public sector.
Effective December 1, 2025, government agencies must ensure that suppliers pay their subcontractors on government contracts on terms no less favourable than those they receive from government. This means if a supplier is paid within 5 or 10 days by a government agency, they must pay their subcontractors on the same terms, improving cash flow for small businesses.
These changes build on rules introduced in November 2024, which require more agencies to be able to receive and send eInvoices from January 2026 and pay domestic trade invoices and eInvoices more promptly. The new rules provide additional cash flow incentives for businesses to send eInvoices to government.
MBIE's eInvoicing team is offering webinars to support large suppliers in their transition to eInvoicing. An initial webinar 'Transition to eInvoicing: Preparing large suppliers for government requirements' is scheduled for November 19, 2025, covering the Government Procurement Rules, eInvoicing fundamentals, and implementation pathways.
The new rules aim to improve payment times to small businesses and demonstrate government leadership in supporting better cash flow and fairer payment practices. Businesses adopting eInvoicing benefit from time-savings, no lost invoices, faster payment processing, and reduced risk of invoice fraud. The more businesses that participate, the greater the network benefits.
Large suppliers should begin preparing for eInvoicing requirements ahead of the January 2027 deadline. Businesses are encouraged to register for MBIE webinars and assess their current invoicing systems. All suppliers working on government contracts should review their subcontractor payment terms to ensure compliance with the December 2025 requirements.
