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Papua New Guinea Tax Information

10% GST

GST is 10% standard. Registration required above PGK 250,000 turnover. TIN mandatory for businesses.

Contractor Services to Invoice

  • Labor charges
  • Material costs
  • Equipment rental
  • Permit fees
  • Subcontractor work
  • Change orders
  • Warranty work

Invoice Requirements in Papua New Guinea

TIN number
GST registration
Client TIN
Invoice number
GST (10%)
Total in PGK

Payment Terms

Progress billing at milestones. Retain 5-10% until final inspection.

Cash14 days30 daysCOD

Payment Methods in Papua New Guinea

Bank TransferBSPWestpacANZCredit CardCash

Contractor Invoice Tips

  • Break down materials and labor
  • Reference permits
  • Document change orders
  • Include lien waiver language
  • Track progress payments

Frequently Asked Questions

What tax rate applies to contractor invoices in Papua New Guinea?

Papua New Guinea has 10% GST. GST is 10% standard. Registration required above PGK 250,000 turnover. TIN mandatory for businesses.

What payment methods are common for contractors in Papua New Guinea?

Common payment methods in Papua New Guinea include: Bank Transfer, BSP, Westpac, ANZ, Credit Card, Cash. Progress billing at milestones. Retain 5-10% until final inspection.

What should contractor invoices include in Papua New Guinea?

Your invoice should include: TIN number, GST registration, Client TIN, Invoice number. For contractor services specifically, also include: Labor charges, Material costs, Equipment rental.

How should contractors bill for projects?

Progress invoicing at milestones. Break down labor, materials, and subcontractor costs.

How do contractors handle material markup?

15-25% markup is standard. State policy in contracts.

What is PNG's GST rate?

Papua New Guinea applies 10% GST on most goods and services. Exports are zero-rated. Some essential items like medicine and education may be exempt or zero-rated.