If you perform or provide listed services in New Zealand using an online marketplace (such as a website or app) — the online marketplace will collect and return GST on the sale.
If you do not know whether you’re using an online marketplace, please check with them. These GST changes do not affect services that do not go through an online marketplace.
Listed services
Listed services include:
- ride-sharing
- food and beverage delivery
- short-stay and visitor accommodation.
How the new rules apply to you
How the new GST rules apply to you depends on whether you are GST-registered or not.
If you perform or provide listed services in New Zealand, you must give your online marketplace operator your:
- name
- IRD number
- GST registration status.
You must tell your online marketplace if you're GST-registered. If you do not, they may treat you as non-GST-registered. You should also tell them if your GST registration status changes.
Non-GST-registered: Flat-rate credit scheme
A flat-rate credit scheme will apply if you are not GST-registered.
From 1 April 2024, online marketplace operators will collect GST at the standard 15% rate on listed services that are performed, provided or received in New Zealand. They will pay 6.5% to us and will pass on 8.5% to you.
This flat-rate credit is for you to keep and recognises the GST on your costs from supplying listed services.
GST-registered
If you're GST-registered, you must include the supply of listed services sold through a GST-registered online marketplace as a zero-rated supply in your GST return. You can still claim GST on the costs of making supplies of listed services.
If you're also providing listed services that do not go through an online marketplace, the normal GST rules apply. You'll have to pay GST on these services.
If you receive a flat-rate credit when you are GST registered, you'll need to return it to us by making a debit adjustment in your GST return. If you do not do this and carry on receiving flat-rate credits, we may charge you penalties.
Generally you will have to return GST on the sale of your motor vehicle and property used to provide listed services. There are some situations where you may be able to treat these as non-taxable supplies.
Find out more about electing to treat goods as non-taxable supplies on our GST adjustments page.
GST adjustments for business, private and exempt use
Opt-out rules for large accommodation hosts
Some GST-registered accommodation hosts can choose to opt-out of the marketplace GST rules. They then carry on being responsible for the GST obligations. If you meet the criteria, you can opt-out now before the rules apply from 1 April 2024.
To opt-out 1 of the following must apply:
- You must make more than $500,000 of supplies in a 12-month period and be a non-individual.
- You must meet a 2,000-night threshold. This is based on the number of nights of accommodation listed through a single online marketplace.
If you make more than $500,000 of supplies in a 12-month period, you can tell your marketplace operator that you’re opting out.
If you do not make more than $500,000 but meet the 2,000-night threshold, you must enter into an agreement with your marketplace operator to opt-out of the rules.
Valid opt-out agreements
Valid opt-out agreements must be in writing and state that the accommodation host remains responsible for the tax obligations under the GST Act. This includes giving the customer taxable supply information (if required), identifying them as the supplier, and providing GST returns and paying GST to us.
Transitional rule for accommodation bookings made before 1 April
The transitional rule means marketplace operators and listing intermediaries (such as certain property managers) do not have to use the marketplace rules for short-stay accommodation booked before 1 April 2024.
If you are GST-registered and your online marketplace or listing intermediary lets you know they are using the transitional rule, you need to collect and pay GST on the relevant bookings under the normal rules.
If you are not GST-registered, you do not need to do anything. If your online marketplace or listing intermediary uses the transitional rule, you will not get any flat-rate credits for the relevant bookings.
When apps and websites are not required to collect GST
Not all apps and websites meet the definition of an online marketplace.
This is the case if the business operating the website or app is supplying services directly to the customer. For example, a platform that provides delivery services directly to customers, and hires you to be a delivery driver, either as an employee or an independent contractor, will not be subject to the new rules.
If you are hired as a delivery driver in this situation the flat-rate credit rules also do not apply.