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From 1 April 2024 online marketplace operators (resident or non-resident for tax purposes), who facilitate the sale of listed services, must collect and return GST of 15% when the service is performed, provided, or received in New Zealand. This will apply whether the seller is GST-registered or not.

What listed services are

Listed services include:

  • ride-sharing and ride-hailing
  • food and beverage delivery
  • short-stay and visitor accommodation.

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

Long-term accommodation

Accommodation used by the customer as their principal place of residence is generally exempt for GST. This is usually the case if the Residential Tenancies Act 1986 applies to the accommodation.

GST applies to all supplies of accommodation in a commercial dwelling, for example a hotel, motel, boardinghouse, or camping ground, regardless of the length of time the accommodation is provided for.

The rules that allow for a reduced rate of GST for accommodation provided for 4 weeks or more do not apply if the accommodation is supplied through an online marketplace.

Who is affected

The rules affect:

  • online marketplace operators that connect buyers with sellers of listed services
  • sellers on online marketplaces that get income from listed services including drivers, deliverers and accommodation owners
  • listing intermediaries that list short-stay and visitor accommodation on online marketplaces on behalf of accommodation owners.

Some GST-registered accommodation owners can choose to opt out of the marketplace rules and carry on being responsible for their GST obligations.

Marketplace operators

You will be treated as the supplier of listed services if you:

  • authorise a charge for the supply of listed services to the customer
  • authorise the delivery of the supply of listed services to the customer
  • set the terms or conditions under which the supply of listed services is made, whether directly or indirectly.

This applies whether you are resident or non-resident for GST purposes in New Zealand.

Registering for GST

You must register for and return GST if the total sales (including listed services) are more than, or are expected to be more than, NZ$60,000 in a 12-month period.

If you are a New Zealand tax resident, you can register for GST in myIR.

Log in to myIR

If you are a non-resident, you can use our registration process for non-residents.

Register for GST on low value imported goods, remote services or listed services

If you are already registered for GST, and the marketplace rules for listed services apply to you, please let us know by emailing [email protected]

Flat-rate credit scheme

A flat-rate credit scheme will apply for sellers who are not GST-registered.

You will collect GST at the standard 15% rate on listed services that are performed, provided or received in New Zealand.

You will pass on 8.5% to sellers who are not GST-registered and pay the remaining 6.5% to us. See completing your GST returns for how to do this.

The 8.5% passed on to unregistered sellers recognises the GST on their costs from supplying listed services.

Using the new rules

You must identify sellers that are GST-registered from those who are not. So you can do this, sellers must provide you their name, IRD number and GST registration status. They must also tell you about any changes to their GST registration status.

You must inform sellers of the total amount of flat-rate credit you’ve passed on to them. This must be done at least once a month.

Completing your GST returns

Include the total sales of listed services (including 15% GST) as sales and income in your GST return.

Claim a credit adjustment for flat-rate credits you pass on to non-GST-registered sellers.

Tax Policy advice

Read more about GST on listed services and the flat-rate credit scheme.

Special report: GST on accommodation and transportation services supplied through online marketplaces (Tax Policy)

Marketplace operators can email us with any questions at [email protected]


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Last updated: 07 Nov 2024
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