From compliance to competitive advantage: How New Zealand’s eInvoicing mandate can set your business apart

The New Zealand Government’s eInvoicing mandate isn’t just a box-ticking exercise—it’s a transformative opportunity for businesses to reimagine their operations.

As part of its digital strategy, the government is driving the adoption of eInvoicing through the internationally recognised Peppol framework, aiming to increase efficiency, transparency, and interoperability. A real opportunity lies in how businesses can leverage this shift to streamline processes, foster trust, and gain a competitive edge.

This article explores how New Zealand businesses can move beyond compliance to turn eInvoicing into a powerful driver of growth and innovation.

The mandate: What’s the big deal?

The New Zealand government is updating its procurement rules to expand the use of eInvoicing across a wider range of public agencies, and has set a target for agencies to pay eInvoices in 5 days, in a view to boost efficiency and support businesses.

Starting January 2026, about 135 government agencies, including major ones like ACC, Waka Kotahi (NZ Transport Agency), Health NZ and NZ Police, will need to be able to receive eInvoices and pay 95% of domestic trade eInvoices within 5 business days. Agencies who send over 2,000 invoices per annum will also be required to send them as eInvoices.

The Government will also begin consulting with businesses on requiring certain government suppliers to send eInvoices as part of the Government Procurement Rules, with the outcomes to be reported back to Cabinet in February 2025.

How eInvoicing gives you a competitive edge

Let’s dive into the real benefits. Sure, compliance is the baseline, but the businesses that treat eInvoicing as more than just a “must-do” will see real rewards.

a) Save time and money

Manually chasing invoices is time consuming, not to mention prone to errors. With eInvoicing, you can automate the whole process, which means:

• less admin, fewer mistakes
• faster payments hitting your account particularly critical for SMEs
• lower costs to process each invoice.

For a small supplier working with government agencies, eInvoicing means you can get paid weeks earlier. That’s a big deal if cash flow is tight.

b) Build better relationships

Imagine being the supplier government agencies know they can count on. You’re not just another vendor—you’re a preferred partner. eInvoicing makes you reliable and easy to work with by:

• ensuring your invoices are accurate and sent on time
• cutting out disputes over missing or wrong information
• creating trust with your customers and suppliers.

c) Use data to work smarter, not harder

Every eInvoice generates a goldmine of data. You can use this to:

• spot trends in cash flow or late payments
• better understand your financial health
• negotiate better deals with suppliers based on insights into your spending patterns.

The businesses that treat eInvoicing as more than just a transactional tool and start tapping into the data are the ones that will stay ahead.

e) Future-proof your business

This Government eInvoicing mandate isn’t the last. Governments and industries are moving fast toward automation, real-time reporting, and other digital requirements. By adopting eInvoicing now, you’re not just solving today’s problem—you’re setting yourself up to adapt easily to whatever comes next.

Think of it as building a foundation. Once you’ve got the systems and processes in place, handling future changes will be so much easier.

How to get started