GST Changes - Listing on Online Platforms
New rules have changed the GST treatment of short-stay accommodation when it is booked through an online platform , website , or app , that is operated by someone else e . g . you ’ ve listed your holiday home on Airbnb or Bookabach , etc .
Short-stay accommodation booked through an online platform will attract GST at 15 %, regardless of whether or not you are GST registered . The platform operator ( Airbnb etc ) will be responsible for charging the GST , paying it to Inland Revenue , and then issuing a tax invoice back to the customer making the booking .
If you are GST registered
• You must let the platforms you use know that you are GST registered .
• You will no longer need to account for GST at 15 % when supplying accommodation that is booked through a platform .
• You must instead report these in your GST return as zero-rated supplies .
• You don ’ t need to issue tax invoices to either the customer or the platform .
• You should still be entitled to claim GST on your costs in your GST return , as you have done previously .
If you are not GST registered
• If you are not already required to be GST registered ( income does not exceed $ 60k etc ), you don ’ t need to register or account for GST - the platform will do this , and your property will not come into the “ GST net ” and become taxable on sale .
• You should still monitor whether your supplies reach the GST registration threshold , and if they do , you will need to register for GST and notify the platform of your change in GST registration status . If this occurs , the points above “ If you are GST registered ” will apply .
General Advice - Online Platforms
Due to the complicated relationship between short-term accommodation and its GST treatment , we recommend as a first step to seek professional advice as the cost involved could prove far more beneficial than getting it wrong . We also suggest the following :
• Check with the listing platform that they meet the IRD definition of these new rules , and seek their advice
• Where you collect the payment from guests directly , you may need to make a payment to the platform to cover their GST liability .
• If you are not GST-registered :
• Ensure the online platform holds the correct information ( and your GST registration status is correct ) so that you receive the flat rate credit .
• Review your pricing and consider the impact of this additional GST cost .
• If you are already GST registered :
• Notify the online platform of your GST registration status .
• Consider what processes will need to change ( e . g . ensuring you disclose zerorated supplies for bookings through platforms ).
You should carefully consider your financial goals when assessing the viability of shortterm accommodation vs long-term residential tenancies , as the reality may not be quite what it seems .
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