Tax registration number

Requirement

All companies are given an identification number, named organization number, by authorities. This number is used when reporting corporate information to the government.

All countries that have VAT as a method of taxation require a VAT registration number. This number is often the organization number, with the addition of the country code.

In New Zealand, the Goods and Service Tax (GST), of 15%, is charged on most goods and services, for businesses with an annual turnover that exceeds NZ$60,000.

The IRD (Inland Revenue Department) number is a unique number of 8 or 9 digits. The IRD number identifies the company to the government. This number is required to register for GST. This number must be used on invoices and in GST periodic returns.

The New Zealand Business Number (NZBN) was introduced in 2013 and is based on the GS1 international standards. This number is being rolled out to all businesses, including state sector entities, charitable trusts, etc. This number will eventually replace other numbers as the unique identifier of the company. The NZBN is 13 digits long. This table shows the structure of the NZBN:

Position	Description
1-2	Country ID
3-12	Company identifier
13	Check digit

M3 solution

The organization number, tax number, and VAT number of the company are stored on the division. The VAT numbers of the company’s customers and suppliers are stored per customer and supplier. The VAT number can be validated by M3. Validation rules are based on Modulo 10 or 97, depending on the type of number and country.

Configuration guidelines

Program ID	Program name	Description or comment
MNS100/G	Company. Connect Division	Specify the GST registration number of the entity.
CRS610/J	Customer. Open	Specify the GST registration number of the customer.
CRS620/E	Supplier. Open	Specify the GST registration number of the supplier.
CRS045	Country. Open	In the Chk dig mtd org field, set the validation method for the check digit of the business registration number as applicable. In the Chk dig mtd VAT field, set the validation method for check digit the GST registration number as applicable.
OIS002/F	Customer. Connect Addresses	Optionally, in the VAT reg no field, specify the GST registration number.