07/03/2024
Tax Compliance: What are some basic New Zealand tax laws and regulations:- goods and services tax (GST), income tax, and payroll [f]
Anyone who provides lodging or ride-sharing services through an online marketplace in New Zealand, such as Airbnb or Uber, will be affected by new Goods and Services Tax (GST) changes starting from April 1, 2024.
What is the new legislation?
Presently, service providers are exempt from GST if their turnover is below the $60,000 GST registration threshold. However, the new legislation coming into effect on 1 April 2024 mandates GST on accommodation and transport services facilitated through electronic marketplaces, regardless of the GST registration status of the property owner or driver.
The legislation introduces a new category of services called ‘listed services’, encompassing commercial, short-stay, and visitor accommodations (like Airbnb and Bookabach), as well as ride-share and food/beverage delivery services (such as Uber and Ola).
Under this change, the electronic marketplace is considered the service provider and is obligated to collect and remit 15% GST on all services provided to end-users through their platform.
In summary, GST-registered owners should see no change in their financial situation. Non-registered individuals will need to declare additional income in their tax returns due to the flat-rate credit. This is because they will receive that extra credit in cash, resulting in a net increase in revenue (assuming no changes in sales/bookings
