GST Online Marketplace Rules

If you perform or provide listed services in New Zealand using an online marketplace (such as a website or app eg. Air BNB or Uber Eats) the online marketplace will collect and return GST on the sale.

Listed services

Listed services include:

• ride-sharing

• food and beverage delivery

• short-stay and visitor accommodation (renting out your residential property to guests for up to 4 consecutive weeks at a time. Examples of property rental online marketplaces are Airbnb, Bookabach and Holiday Homes.)

GST also applies to closely connected services if they go through the online marketplace. For example, holiday rental cleaning fees charged on top of the accommodation costs.

How the marketplace rules apply to you

How the marketplace rules apply to you depends on whether you are GST-registered or not.

If you perform or provide any of the above listed services in New Zealand, you must give your online marketplace your:

• name

• IRD number

• GST registration status

You must tell your online marketplace if you're GST-registered. You should also tell them if your GST registration status changes.

If you are not GST-registered: Flat-rate credit scheme

A flat-rate credit scheme will apply if you are not GST-registered.

From 1 April 2024, online marketplaces will collect GST at the standard 15% rate on listed services that are performed, provided or received in New Zealand. They will pay 6.5% to the IRD and will pass on 8.5% to you.

If you use a listing intermediary (property manager or agent) to list short-stay and visitor accommodation on an online marketplace for you, they will administer the flat-rate credit scheme instead of the marketplace.

This flat-rate credit is for you to keep and recognises the GST on your costs from supplying listed services.

You can choose to include the flat-rate credit as assessable income in your income tax return or not – it’s up to you.

Example: Jared is not GST registered. He provides driving services in Wellington on a ride-hailing platform. The platform charges a customer a fare of $30 for Jared’s services. The platform adds 15% GST to this fare, charging the customer a total of $34.50. As Jared is not GST registered, the GST amount of $4.50 is accounted for in the following way:
• $2.55 (8.5%) is passed on to Jared
• $1.95 (6.5%) is paid to Inland Revenue.
Jared 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 of listed services sold through a GST-registered online marketplace as a zero-rated supply in your GST return. You can still claim GST on the costs of making supplies of listed services.

If you're also providing listed services that do not go through an online marketplace, the normal GST rules apply. You'll have to pay GST on these services.

If you receive a flat-rate credit when you are GST registered, you'll need to return it to the IRD by making a debit adjustment in your GST return. If you do not do this and carry on receiving flat-rate credits, the IRD may charge you penalties.

Example: Amy is GST-registered. She rents out a property on an online marketplace for $100 per night. The property is in New Zealand and is available for short-stay accommodation. The online marketplace adds 15% GST to the nightly rate, charging guests $115. They include $115 as sales and income in their GST return. In Amy’s GST return, she includes:
• $100 as total sales and income (box 5)
• $100 as zero-rated supplies (box 6).
The zero-rated supplies are subtracted from sales and income resulting in $0 total GST collected. Amy can also claim back GST on any purchases and expenses incurred to rent out her property as short-stay accommodation.

When you get paid directly by guests

Even when guests pay you directly, the online marketplace may still have to account for GST on the supply. This is the case when they are treated as the supplier of the services.

The online marketplace may collect the GST they owe the IRD from you directly.

When this occurs, the online marketplace may ask you for information so they can meet their GST obligations. This may include asking you for the amount paid and the date of the payment for the service.