October 2024
Disclaimer. This page is intended solely to assist you in understanding the regulations you may need to comply with. The information provided here is not exhaustive and may not reflect the most current legal standards. It is your responsibility to ensure compliance with applicable laws. For further guidance, please contact your local tax authorities or consult with a qualified legal or tax professional.
From April 1st, 2024, misterb&b will start collecting GST on all accommodation rentals booked through our platform. More information on the official page on the GST changes.
GST on accommodation services
For all rentals located in New Zealand, online marketplace operators facilitating such rentals must collect GST from the Guests. As of April 2024, the rate is 15% of the accommodation price (including all ancillary fees, such as cleaning fees).
Please note the supply of visitor accommodations within New Zealand through an electronic marketplace is subject to GST, without consideration to:
- The GST registration status of the Host - the status will only determine whether or not you benefit from the flat-rate credit (see below);
- The nature of the accommodation - all the spectrum of short-stay and visitor lodging is covered.
Information you must provide to misterb&b
In order for misterb&b to correctly report taxes, you are required to provide:
- Your IRD number
- Your GST number, only if you are GST-registered
Not providing required information, where relevant, may lead to the freezing of your payouts until resolution.
Do you need to register for GST?
Please note this new GST regime does not mean all Hosts must be GST-registered. The previous thresholds remain in effect:
- If you are not registered for GST, you will need to register if you have earned, or will earn more than $60,000 from all your taxable activities in any 12-month period.
- This includes sales provided directly to customers (for example through your own website) or made through an online marketplace.
- You may also register voluntarily if you earn less than this.
Information for Hosts not registered for GST: the flat-rate credit scheme
From April 1, 2024, a new flat rate credit scheme will apply.
- Under this scheme misterb&b will collect GST at the standard 15% rate. We will return 6.5% GST to Inland Revenue and will pass the remaining 8.5% to you (flat-rate credit).
- This flat-rate credit is for you to keep and recognizes costs you incur when supplying accommodations to your Guests.
- The flat-rate credit amount passed to you for each transaction will be specified on your invoice.
- Do not include any flat-rate credits you receive as income in your income tax return. These are excluded income for income tax purposes.
Important. We will pass a flat-rate credit to every Hosts that did not provide us a NZ GST number. If you received from misterb&b a flat-rate credit while actually being GST-registered, you will need to: (1) return it to Inland Revenue by making a debit adjustment in your GST return and (2) provide us with your GST number without delay. If you continue to receive flat-rate credits incorrectly without letting misterb&b knows of your GST registration, penalties may apply to you.
Information for Hosts registered for GST
From April 1, 2024, you should stop collecting the GST from your Guests. misterb&b will collect it and report it on your behalf.
- You will need to treat the supply of accommodations through misterb&b as a “zero-rated supply” on your GST return. Please note you are not required to issue an invoice to misterb&b for this “zero-rate supply”..
- You can continue to claim GST on your return for the costs you incur in making these supplies.
Important. Please note that large GST-registered sellers can opt-out of GST collection by the platform. Strict rules apply: if you meet these conditions and are willing to opt-out, please contact us without delay. More information here.
GST statement
Where applicable, the GST collected on the accommodation price by misterb&b is stated on your Host invoice. To find and download your invoice: from your account, go to "My Listing(s)", then "My Guest(s)", and you will a "Get invoice" button for each booking you had.
Property/Channel managers
Check this official page about property/channel managers and the guidelines AD282 (Property managers and agents - listing intermediary rules) issued by the tax administration.
- Listing intermediaries. A listing intermediary is a GST-registered person who has entered into an agreement with a marketplace operator in the name of accommodation owners to list or advertise visitor accommodation on behalf of the accommodation owner. Common examples are property managers and agents.
- Information provision by Listing intermediaries. Listing intermediaries must provide the tax information of accommodation providers to misterb&b.
- Flat-rate credit administration by Listing intermediaries. See Property managers and agents – listing intermediary rules. Listing intermediaries that manage listings on behalf of the final accommodation owner (the one providing the accommodation service) must be GST-registered and provide misterb&b with such GST-registration information. Then, they need to administer the flat-rate credit for the accommodation owners (Hosts) that are not GST-registered. They must (i) Pass to the final Hosts the flat-rate credit amount (only when such Hosts are non-registered) and provide them with a statement showing the flat-rate credits passed on to them (at least once a month) - the statement must show the accommodation owner the full amount of the flat-rate credit (it should not be reduced or offset by other fees or charges for service they provide to them), and (ii) Claim a flat-rate credit equal to 8.5% of the GST-exclusive price paid by the Guest for the accommodation as a credit adjustment in your GST return.