Parliament is considering changes to the GST on listed services rules. These rules apply to online marketplaces, listing intermediaries and sellers of the following services:
- ride-sharing and ride-hailing
- food and beverage delivery
- short-stay and visitor accommodation.
Proposed changes
We expect the following proposals to become law later this month. After this time, more information will be available.
Deduction rule for flat-rate credits
Online marketplaces and listing intermediaries will only be able to claim a credit adjustment for flat-rate credits they pass onto a seller if they have a record of:
- the seller’s name
- IRD number
- GST registration status.
Timing for accounting for GST on accommodation
There will be more options for when GST on the supply of accommodation can be accounted for. It cannot be later than 7 days after the check-out date but can be an earlier date (like the check-in date).
Taxable supply information
Online marketplaces will need to give taxable supply information to recipients of listed services within 28 days of the time of supply (unless the seller has opted out of the marketplace rules).
Listing intermediaries that are liable to pay GST on the supply of accommodation will be able to provide taxable supply information. This agreement must be:
- made with the online marketplace
- in writing.
Opting out
Accommodation owners will need to tell the listing intermediary they’re opting out of the marketplace rules if they:
- use a listing intermediary
- make more than $500,000 supplies in a 12-month period.
This is instead of telling the online marketplace.
Flat-rate credits and income tax
Sellers will have the option to include flat-rate credits as assessable income in their income tax return if they were not GST-registered when they received the credits. If they choose this option, they can deduct their expenditure on a GST-inclusive basis.
More information
You can find more technical information about the bill, Taxation (Annual Rates for 2024-25, Emergency Response, and Remedial Measures) Bill, on our Tax Policy website.