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 shortterm 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 zero-rated supplies for bookings through platforms).
You should carefully consider your financial goals when assessing the viability of short-term accommodation vs long-term residential tenancies, as the reality may not be quite what it seems.
INVESTMENT INFORMATION GUIDE 13