Additionally, if you’ve booked accommodation for work or family trips after this date, there may be implications you need to be aware of.

In 2023, legislation was passed to subject all transactions on “Electronic Marketplaces” to GST in New Zealand, regardless of whether the service provider, such as a homeowner, is GST registered or not. Although there was initial discussion about repealing this law, it has been confirmed that it will remain in place. As a result, platforms like Airbnb, Booking.com, Expedia, and Vrbo are currently racing to update their software to facilitate the collection and payment of GST to the Inland Revenue (IRD).

At BCA, we have a lot of clients that fall in this regime so we have a vested interest in understanding these changes. It’s frustrating to be so close to the implementation date and still not have all the answers.

This legislation extends beyond properties to cover services like Uber and Uber Eats.

Platforms are required to charge GST on all transactions and remit this GST to the IRD, where the property owner:

is GST registered: they must remit 15% of the GST to the IRD. You will then receive zero-rated income that you declare in your GST return, as guessed you will always have a GST refund.

is NOT GST registered: they must remit 6.5% of the GST to the IRD and pay the remaining 8.5% to the property owner.

There are exemptions available if:

your income from these activities exceeds $500,000 per year, or
you had more than 2,000 nights booked in a year.
We’ve received information regarding the following platforms:

Expedia: They have been unable to update their software and will remove all NZ-listed properties from 1 April 2024, unless you qualify for an exemption.

Vrbo (formerly Bookabach): They have upgraded their software and will be able to handle the new GST requirements. However, they will automatically add 15% GST to all bookings from 1 April.

Airbnb: They’ve announced plans to add 15% GST to every booking from 1 April, although their system is not yet fully set up to handle NZ GST.

Booking.com: They have not yet provided guidance on their plans for handling the new GST requirements.

It’s essential to notify your platform provider if you’re not GST registered, as they may default to adding 15% GST to your property and remitting this to the IRD. As for future bookings, it’s advisable to contact your guests if your property is listed on Expedia to discuss any potential implications.

For further information, please reach out to Raveen Kumar who is specialising in this area.
Phone: 09 2991000 Extn: 2