The Airbnb Tax - GST on Online Marketplaces

If you provide services through an online marketplace (i.e. a website or an app like Airbnb, or Uber) from 1 April 2024, the online marketplace will collect and return GST on the sale. There will be different treatments depending on whether you are GST-registered or not.  

What everyone will need to do, regardless of GST status, is provide the Online marketplace operator: 

• IRD number  
• Your name

• GST Registration Status 

If you do not, they will treat you as non-GST registered. 

 The listed services included cover:

• Ridesharing
• Food and Beverage delivery 
• Short-stay and visitor accommodation 

Non-GST Registered 

If you are not GST registered, the online marketplace will collect GST at the standard 15% rate on services that are performed or provided.  They will return 6.5% to IRD and pass on 8.5% to you. 

This flat-rate credit is for you to keep and recognises the GST on your costs from supplying listed services.  It is not included as income for your income tax return, rather it is counted as excluded income.   

If you have expenses that relate to income made; 

1. Through an online marketplace, deduct these on a GST-exclusive basis, as the flat rate credit recognises the GST on the costs you incur when making this income. 

1. Outside of an online marketplace, deduct these on a GST-inclusive basis. 

Example. 

George is not GST registered.  He rents out a property for $100 per night.  The property is in New Zealand and is available for short-stay accommodation.   

The online marketplace adds 15% to this, charging the customer $115 per night.  As George is not GST registered, the GST amount of 15% is accounted for in the following way; 

$6.50 (6.5%) is returned to IRD 

$8.50 (8.5%) is passed on to George 

George receives a monthly statement from the platform confirming the flat-rate credits passed on to him.    

GST-Registered 

If you are GST-registered, you must include the supply as a zero-rated supply in your GST return.  You can still claim GST on your costs to provide or perform the services.       

If you are also providing services that do not go through an online marketplace, the normal GST rules apply, and you will have to pay GST on these services.   

Generally, you will have to return GST on the sale of your property/motor vehicle used to provide the listed services.  There may be some situations where you can treat these as non-taxable supplies.  

Example. 

Zac is GST registered. He rents out a property for $100 per night.  The property is in New Zealand and is available for short-stay accommodation.   

The online marketplace adds 15% to this, charging the customer $115 per night.  They include $115 as sales and income in their GST return. 

In Zac's return he includes; 

$100 as sales and income and $100 as a zero-rated supply.  The zero-rated supply is subtracted from sales and income resulting in $0 total GST collected. 

Zac claims back GST on the purchases and expenses incurred to rent out her property as short-term accommodation.    

But I already had bookings? 

There is a transitional rule which means marketplace operators, and listed intermediaries (such as property managers) do not have to use the marketplace rules for short-stay accommodation booked before 1 April 2024.   

If you are not GST-registered, you do not need to do anything.  If your online marketplace uses the transitional rule, you will only get flat-rate credits for the relevant bookings i.e. those after 1 April 2024. 

 If you are GST-registered and your online marketplace lets you know they are using the transitional rule, you need to collect and pay GST on the relevant bookings under the normal rules.