From 1 April 2024 new GST rules come into place for online marketplace operators who facilitate the sale of listed services.  National had originally said before the election that they would repeal these rules, however it now looks like they will be passed into Law within the next couple of months.

Online market places must now collect and return GST when the service is performed, provided, or received in New Zealand.  This new rule applies whether the seller is GST registered or not.

The main services affected are:

• Ride sharing or ride hailing (such as Uber)
• Food and Beverage deliver (Uber Eats, Door Dash etc)
• Short stay accommodation (Airbnb)

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Next steps

If you are an Uber driver or have accommodation listed on Airbnb or similar sites, you will soon receive information from the site provider about how the changes will affect you.  The rules will be slightly different depending on whether you are GST registered or not.

If you are not GST registered the sites will add 15% GST to any sales and will pay 6.5% to IRD and 8.5% to you.  The 8.5% credit is to recognise the GST on your costs.

If you are GST registered the site will still charge 15% GST on any sales and will pass the full amount of GST onto the IRD.  In your GST return you will then stop returning GST on your sales, but still claim GST on business related expenses.

There are special rules for large GST registered sellers.  These apply to sellers who make more than $500,000 in supplies or have more than 2,000 nights accommodation listed on a marketplace.

If you have any questions in regard to these new rules please contact your usual CT advisor.