Airbnb & short term accommodation GST changes

Posted on 4 April 2024 by Annè Lensink

If you have an Airbnb property you may now be liable to return GST to the IRD for accommodation and cleaning fees for any bookings on or after 01 April 2024. The change applies to accommodation and cleaning fees only, not Airbnb service fees and any other fees applied to your bookings. The GST charge will be clearly shown to your guests as a 15% GST line item at the time of booking.

You won’t need to adjust your pricing as GST will be automatically calculated, collected and returned to IRD by Airbnb. BUT, you may need to make some changes in Airbnb to ensure they are applying GST to your bookings as per the IRD’s GST Marketplace rules.

If you are GST registered:

Make sure you’re GST details are correct in Airbnb:

Go to Account > Taxes
Select “Add VAT ID number”
Complete the VAT ID form with any changes to GST information, if required.

If you’ve been remitting GST to IRD on accommodation through your GST returns, you can stop doing this as Airbnb will do this on your behalf. Some exemptions apply, for example if your accommodation income is over $500,000 per year and you’re a company (or non-individual). Find out more on who can opt out here.

If you are not GST registered:

You don’t need to do anything. A flat rate credit of 8.5% will be passed on to you when you receive your host payout.

Tax implications for short term accommodation

Airbnb and other short term accommodation can add complexity to your tax obligations. There are a range of tax laws you need to comply with. If you have any questions, Villa has a short term accommodation specialist so please get in touch. We can guide you through the tax obligations specific to your property.

Please contact us to find out more.

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