Buyer Created Tax Invoices Explained: A Guide for NZ Contractors & Subcontractors

If you're a contractor or subcontractor being asked to accept Buyer Created Tax Invoices, it's worth knowing exactly what they do - and don't - cover.

A BCTI records the GST treatment of a payment; it is not confirmation that your payment claim has been properly assessed under the Construction Contracts Act 2002. Used correctly, BCTIs can save real admin time and keep your figures in sync. Used without a matching Payment Schedule, they can quietly erode your right to be paid in full or challenge a deduction.

This guide covers how the standard payment claim process works, what makes a BCTI valid, the common mistakes contractors make in accepting them, and how job management software can help you keep the independent paper trail you need if a dispute ever goes to adjudication.