The transitional rule means marketplace operators (and in some cases listing intermediaries) can choose not to collect and pay GST on short-stay accommodation supplied on or after 1 April 2024, if the booking was made before this date.
Using the transitional rule
You can only use the transitional rule if you collect and pay GST on the supplies. If you use the rule, you may need to notify the accommodation host, or the listing intermediary acting for the host.
When you have a direct relationship with the host
If you are a marketplace operator dealing directly with an accommodation host or a listing intermediary who collects and pays GST on the supplies of accommodation, you must:
- notify the host if they are GST-registered that you are using the transitional rule in reasonable time
- ensure the GST-registered host has enough information to collect and pay GST on the relevant bookings.
If the host is not GST-registered, you do not need to notify them you are using the transitional rule.
When you interact with a listing intermediary
If you are a marketplace operator dealing with a listing intermediary acting for the accommodation host, you must:
- notify the listing intermediary you are using the transitional rule in a reasonable time
- ensure they have enough information for the host to collect and pay GST on the relevant bookings.
Timeframes for notification
If you use the transitional rule, you must notify the listing intermediary or the GST-registered host in reasonable time. This means you must try to provide the information as soon you can, so that GST-registered hosts can account for GST on the relevant supplies in the right GST return.
At the very latest, the information should be with them before the due date for the April 2024 GST returns.
If you deal with a listing intermediary, you should take into account that they will need to pass this information on to the host.
You do not need to tell us you are using the transitional rule. However, you must keep records that you chose to use the rule for a minimum of 7 years.
Completing your GST returns
If you are a marketplace operator or listing intermediary using the transitional rule, do not include the relevant supplies as sales in your GST return or claim a credit adjustment for a flat-rate credit for these supplies. GST registered underlying sellers will include these supplies as sales and income in their GST returns.