When they're used
When sellers cannot meet our usual requirements for tax invoices.
Sellers can apply for approval to issue modified tax invoices for particular types of goods or services, or to particular buyers.
An example is the sale of goods via an app where the app does not have a field for the buyer to enter their address and this field cannot be added.
In this case the seller cannot meet our usual requirement to show the buyer's address on the tax invoice for supplies worth more than $1,000. The seller can apply for approval to issue a modified tax invoice.
Rules for modified tax invoices
GST-registered sellers need to get our approval to issue modified tax invoices.
The seller needs to keep records showing the particulars of the supply.
The tax invoice must have the words 'modified tax invoice - IRD approved' in a prominent place.
The invoice needs to show all the other usual requirements for tax invoices.