Selling services to a New Zealand client from India is a standard service export: you invoice the client, collect payment into your Indian bank, and list each invoice on your monthly EDF with "New Zealand" as the country in Part 2B. Because NZD is a smaller currency and many New Zealand engagements are modest in size, the practical issues are currency choice and bank charges eating into small wires, more than any special paperwork. Full value must reach India within 9 months of each invoice date.
Key takeaways
- NZD or USD are the usual invoice currencies; pick one in the contract and stick with it.
- On small invoices, fixed wire and intermediary charges can be a large share; consider fewer, larger invoices or a lower-cost payment route.
- New Zealand clients may ask for supplier and tax details; questions about withholding go to your CA and the client's accountant.
- India and New Zealand have a DTAA, relevant if any tax is withheld.
- Your Indian bank is your AD bank; declare each invoice on the EDF within 30 days from the end of the invoice month.
Who typically buys Indian services from New Zealand
New Zealand clients are often small and mid-sized businesses: agencies, retailers, software firms, professional practices and non-profits. Engagements tend to be retainers or projects in the low thousands of NZD, with long-term relationships once trust is built. That profile shapes your approach to invoicing.
NZD, USD or INR
| Currency | Works well when | Things to weigh |
|---|---|---|
| NZD | Client wants to pay in home currency | Your bank converts NZD; conversion may be via cross rates |
| USD | You prefer a major currency | Client converts NZD to USD and may pay a conversion margin |
| INR | You want zero currency risk | Client bears conversion; 12-month realisation window applies |
A common compromise is NZD for retainers with local clients and USD for clients that already deal internationally. Whatever you choose, keep the invoice, payment and Part 2B currency consistent.
Payment routes and the bank-charge problem
Options typically include:
- International wire (SWIFT) from the client's bank to your Indian current account.
- Payment services that collect locally in NZD and remit to India.
- Card or payment links via cross-border gateways for small amounts.
On a NZD 800 invoice, a fixed sending fee plus intermediary and receiving charges can take a noticeable bite. Some ways to manage it:
- Bill monthly rather than weekly, so each wire is larger.
- Agree in the contract who bears sending charges (for example, "all sender's bank charges borne by the client").
- Compare payment services for small, regular payments, checking their current terms for India.
Record the expected net amount in the NRV column of Part 2B and keep the payment advice that explains any shortfall.
Tax forms and withholding
New Zealand clients' accountants may ask you for supplier details and confirmation that you are a non-resident business with no presence in New Zealand. New Zealand has its own rules for some payments to non-resident contractors, and whether any apply depends on the nature of the work and where it is performed. We are not stating those rules here; let the client's accountant say what they need, and involve your CA if withholding is suggested.
If tax is withheld, obtain a statement of the amount. The India–New Zealand DTAA and Form 67 may allow a foreign tax credit in India. Our article on DTAA basics for service exporters explains how treaties fit in.
A convenient coincidence: New Zealand's standard tax year also runs April to March, so year-end statements line up with India's financial year.
A worked example
Fernbird Studio LLP in Thiruvananthapuram designs websites and runs maintenance for small businesses in Auckland and Wellington. December 2026 invoices:
| Invoice | Date | Client | Description | Currency | Amount |
|---|---|---|---|---|---|
| FS/NZ/091 | 1 Dec 2026 | Auckland retailer | Maintenance, December | NZD | 650 |
| FS/NZ/092 | 1 Dec 2026 | Wellington clinic | Maintenance, December | NZD | 650 |
| FS/NZ/093 | 15 Dec 2026 | Auckland non-profit | New website, milestone 2 | NZD | 3,200 |
| FS/NZ/094 | 22 Dec 2026 | Wellington agency | UI design sprint | USD | 2,100 |
Fernbird files one EDF for December with four rows, country New Zealand on each, by 30 January 2027. SAC 998314 for website development and design is confirmed with its CA.
When the two NZD 650 maintenance invoices are paid, each payment advice shows about NZD 25 less than invoiced because of charges. Fernbird records the difference and, from January, moves the two maintenance clients to quarterly billing in advance, cutting the number of small wires by two-thirds. All four invoices are well under ₹10 lakh, so Fernbird can close the EDPMS entries through a periodic declaration using our realisation declaration tool.
Filling Part 2B for New Zealand clients
| Column | Entry |
|---|---|
| Recipient name and address | Client's legal name and New Zealand address |
| Country | New Zealand |
| Invoice no. and date | As on your invoice (Indian date) |
| Currency | NZD or USD as invoiced |
| Amount | Invoice amount |
| NRV | Expected amount after known charges |
| Description, SAC | Service description and SAC code |
| Contract no. and date | Agreement or statement of work reference |
GST and timing
Services to a New Zealand business located there usually have their place of supply outside India, so they can be zero-rated if all Section 2(6) IGST Act conditions are met. Under LUT, the invoice should say "Supply meant for export under LUT without payment of IGST". Our export invoice generator includes the wording.
The EDF does not change GST or income tax. It records the export for your bank and RBI.
This article is general information, not legal or tax advice.
Frequently asked questions
What currency should I invoice New Zealand clients in?
NZD is convenient for local clients, while USD suits clients who already deal internationally. Agree the currency in your contract and keep it consistent across the invoice, the payment and the EDF.
How do I reduce bank charges on small payments from New Zealand?
Bill less frequently so each payment is larger, agree in the contract that the client bears its own sending charges, and compare payment services for regular small amounts. Record any shortfall in your NRV and keep the payment advice.
Is there a tax treaty between India and New Zealand?
Yes, India and New Zealand have a DTAA. It does not affect your EDF, but it matters if New Zealand tax is withheld from your payment, since you may be able to claim a credit in India through Form 67.
What do I enter as the country in the EDF for a New Zealand client?
Enter New Zealand in the country column for each invoice in Part 2B, and in field 1.17 where relevant. Use the client's location rather than the location of any bank in the payment chain.
What is the deadline to receive payment from a New Zealand client?
For services, full value must be realised within 9 months from the invoice date, or 12 months if invoiced in rupees. If a client is slow, request an extension from your AD bank before the deadline.
Bottom line
New Zealand clients are loyal and straightforward; the main job is keeping small payments efficient. Invoice cleanly, bill in sensible intervals, and declare each month's invoices with our free EDF form generator.
This guide is general information for Indian businesses, not legal or tax advice. Rules and bank processes change — confirm specifics with your AD bank or chartered accountant.