We recently let you know about come changes coming if you own and rent out (on a short term basis) a room in your home, the bach or an investment property. 

All of the platforms have now issued guidelines on what to do to be ready for 1st April,  excerpts from the websites of Expedia (including Vrbo/Bookabach), Airbnb and Bookng.com have been included below for your information.  It’s time for you to take action on your listings! 

Property Managers/listing agents, please read to the end as there are new proposed rules that were announced at the end of last week that may impact your business. 

Expedia (Released 22 March 2024) 

Expedia own Vrbo/Bookabach. 

Starting 1 April 2024, Vrbo/Bookabach will collect 15% GST on all listed short-stay and visitor accommodations to the New Zealand Inland Revenue Department (IRD) as noted below based on your GST registration status. 

What will I need to do on 1 April 2024? 

1. Provide us with your New Zealand GST registration number (if any): 

On 1 April 2024, we will provide you with a separate email that will include instructions on how to review and update (where necessary) all your underlying properties’ GST information. This is to ensure we pay you out in the future correctly with or without GST Flat-rate Credit (see below). 

2. Upload GST exclusive rates and fees for your properties: 

Starting with bookings as of 1 April 2024, Vrbo/Bookabach will add 15% GST to the rates and fees that are loaded into our portal. To avoid Vrbo/Bookabach adding 15% GST to a rate that already includes GST, please ensure you provide us with GST exclusive rates and fees. 

How will the new GST rules impact me? 

• If you are a non-GST registered property owner, Vrbo/Bookabach will be required to add 15% GST on top of your rates and fees. Out of this 15% GST collected from the traveller, Vrbo/Bookabach will pass 8.5% GST back to you (as a so-called “Flat-rate Credit”) and remit the remaining 6.5% GST to the IRD.  These GST changes may affect the total price the traveller pays – see our pricing examples here for more information. 
• If you are a GST-registered property owner, instead of you it will be Vrbo/Bookabach that will remit the 15% GST to the IRD. 

In case you do not agree that Vrbo/Bookabach remits GST to the IRD, we will not be able to offer your listing on Vrbo/Bookabach starting 1 April 2024 until we have updated our systems. If you are GST registered and meet the opt-out eligibility criteria as set out by the IRD, you may instead consider listing your properties through Expedia Partner Central on our other Expedia Group sites. 

AirBnB (Released 23 March 2024) 

Under Inland Revenue Department’s (IRD) GST Marketplace Rules, Airbnb is required to collect and remit 15% GST on Hosts’ accommodation prices and cleaning fees (excluding Airbnb service fees and any other fees) for listings in New Zealand that are booked on or after 1 April 2024. 

Guests who book with affected Hosts will see a separate line item for the 15% GST collected when booking. 

You do not need to adjust your pricing in regard to this update as GST will be automatically calculated and collected by Airbnb. 

1. To help us appropriately apply the GST Marketplace Rules, if you are GST-registered, please ensure that your GST status on Airbnb is updated as soon as possible. If you need to update your GST number, follow the steps below: 

a. Go to Account > Taxes
b. Select “Add VAT ID number”
c. Complete the VAT ID form 

2. If you are GST-registered and have been remitting GST on accommodation through your own GST returns, IRD has instructed that you can cease doing so since Airbnb will levy and remit this on your behalf, unless an exemption applies (see below). 

3. If you are not GST registered, an 8.5% flat-rate credit will be passed on to you when you receive your Host payout. 

If you are GST-registered and meet certain criteria, you can opt out to be exempted from these rules and will remain responsible for your GST obligations. 

How do I know if I meet the opt-out exemption criteria? 

If you are GST-registered and meet certain criteria, you can be opted out of the marketplace rules. You may receive a separate email from Airbnb outlining the details of the opt-out exemption. 

If you are a non-individual who is GST-registered and make (or expect to make) more than NZD 500,000 of taxable supplies in a 12-month period, you can notify us that you are opting out by contacting our Community Support team as soon as possible. 

 
For more details, please refer to IRD’s fact sheet under the heading “Who can opt out?”. 

If you opt out, you can “add taxes to listing” to manually collect and remit GST to IRD. 

How can I see the amount of GST collected by Airbnb? 

The amount will be displayed in the Gross Earnings tab of your Transaction History. 

I’ve been remitting GST to IRD on bookings. What do I do now? 

If you do not fall under any opt-out exemption and have been remitting GST on accommodation made through Airbnb to IRD, you can cease remitting GST to IRD on these supplies from 1 April 2024. Airbnb will now levy and remit this on your behalf. GST and input tax for other activities not made through Airbnb should continue to be accounted for in the usual way. 

How do I know if I get a flat-rate credit? 

A flat-rate credit will only be passed on by Airbnb to Hosts who have not provided us with their GST number. The flat-rate credit, if passed on, will be displayed in the Gross Earnings tab of your Transaction History. 

How will Airbnb be remitting GST collected to IRD? 

Airbnb is required under the GST Marketplace Rules to file a GST return that reports the total combined reservation revenue for all applicable Airbnb bookings and includes the GST collected for bookings made during the period of that return. 
 
IRD does not require Airbnb to provide any of your information on the GST return. However, we may share any of your information (including your personal data where relevant) with IRD and/or other authorities under other circumstances, in accordance with applicable law (including data protection laws), and/or as described in our Privacy Policy. 

Do I have any other tax reporting obligations? 

You may be responsible for other tax reporting obligations. Please refer to IRD’s website and/or seek independent tax advice for more information. 

Do I have any other obligations related to my listing? 

You are responsible for complying with any other local rules and regulations that may apply to your listing. More information is available on our Responsible Hosting in New Zealand page. 

To learn more about the changes to GST, please visit IRD’s website for more details. 

If you have any questions about the changes, please use this form so they can be collated and passed onto IRD. 

Booking.Com UPDATE

Earlier this month, we let you know about new marketplace rules that affect Goods and Services Tax (GST) on reservations made via our platform in New Zealand. We're now writing to share more information about what this means for you.   

If you are GST registered 

We'll treat you as having opted out of the marketplace rules. That means nothing will change for you and you'll remain responsible for your own GST obligations. 
 
Unless you let us know otherwise, you agree and confirm to us that you choose to continue to be liable for the payment of GST on accommodation services that you provide, and responsible for all GST obligations. This includes providing taxable supply information to your guests. 
 
To opt out of the marketplace rules as a GST-registered partner, you need to either offer or expect to offer more than 2,000 nights of accommodation on one marketplace in a 12-month period, or have total turnover of more than NZ$500,000 in a 12-month period and be a non-individual. To find out more about these criteria, take a look at this Partner Help article. 
 
If you believe you don't meet the criteria for opting out, or if you don't want to, you can update your GST settings and opt back in  in the extranet. 
 
To find out more about the GST obligations if the opt-out criteria apply to you, and what happens if they don't apply to you or you choose to opt back in, take a look at this Partner Help article. 

 If you’re non-GST registered (or if you’re GST registered but you opt back in) 

We'll be required to collect 15% GST on the room or unit rate for all your completed reservations made via our platform on or after 1 April 2024. 
 
If you're non-GST-registered, in line with the flat-rate credit scheme, we'll then pay 8.5% of the total value of the reservation (excluding GST) to you and the remaining 6.5% to Inland Revenue. We'll do this unless you're working with a listing intermediary who has contacted us, in which case the listing intermediary will pay you the flat-rate credit. 
 
In practice, since we won't withhold the GST amount directly from your guests, each month we'll send you a payment request for the GST on your reservations that we've paid to Inland Revenue. 

We'll update your tax rate settings in the extranet 

To prepare for this change, we’ll update your tax rate settings in the extranet from 1 April 2024: 

• Whether or not you're registered for GST, we'll update your tax rate in your room or unit rate setup to 15%. 
• If you currently have 15% VAT (instead of GST) set up as included in your room or unit rates, we won't make any changes. 
• If you don't currently have any tax setup at all, we'll add 15% VAT as included in your existing room or unit rates. You can then update your room or unit rates to reflect this if you wish. 

Please update your IRD number and GST registration status 

Whether or not you’re registered for GST, we’re also required to collect your IRD number (tax file number). Please provide us with this in the extranet as soon as possible, and also check that your GST registration status is up to date. To find out how, take a look at this Partner Help article.   

Please also keep in mind: 

• If your GST registration status changes, please update this in the extranet as soon as possible. If you become GST registered and you don’t let us know right away, you may receive a flat-rate credit from us that you’re not entitled to, and this could lead to penalties and adjustments in your GST return. 
• If you're non-GST-registered, we'll be required to continue to charge GST on our commission invoices for the services we provide to you. This isn’t affected by the new rules on GST on your reservations. 
• If you work with a listing intermediary, such as a property management company who lists your property on our platform, please contact them to make sure you both understand these new GST rules and what they mean for you. 

For more information about marketplace rules, take a look at this Partner Help article and the Inland Revenue website. If you have further questions, we recommend that you contact your client advisor. 

PROPERTY MANAGERS 

If you are a property manager or listing agent, IRD has announced proposed legislation changes that may affect you. 

The important things to note are: 

If you are a listing intermediary, you: 

• will need to administer the flat-rate credit scheme 
• may need to help larger accommodation hosts opt-out 
• may be able to agree with the marketplace you will be responsible for the GST. 

Here is the full IRD brief released on 22 March 2024. 

Property managers and agents – listing intermediary rules (ird.govt.nz) 

Airbnb New Zealand GST Marketplace Rules - Opt-out agreement under the Listing Intermediary exemption (Released 21 March 2024) 

 
You should have received our previous communication today titled “Important: Airbnb will collect and remit GST in New Zealand”. 

A “Listing Intermediary” is a GST-registered person who: 

1. Lists accommodation services on an electronic marketplace on behalf of a Host who makes those supplies through the electronic marketplace; and 
2. Enters into an agreement with an operator of an electronic marketplace to list or advertise accommodation services provided by the Host. 

Based on IRD guidance, by default, a “Listing Intermediary” is required to administer the flat-rate credit and pass on the 8.5% flat-rate credit to Hosts who are not GST-registered. 
 
Based on IRD guidance, if you are a “Listing Intermediary”, you can also ‘opt out’ of the GST Marketplace Rules if you meet the following requirements: 

1. You have provided Airbnb with your GST number (via “Account > Taxes > Add VAT ID number”); 
2. You list or advertise accommodation services provided by Hosts on more than one electronic marketplace; 
3. You enable or facilitate the supply of accommodation services through the use of an electronic system (you can see this via “Account > Privacy & Sharing > Connected Services”) that can facilitate and manage automatically the bookings made by Guests of those services; and 
4. You will agree with Airbnb in a written document (e.g., a Google Form) that you are liable for the payment of GST in relation to accommodation services supplied through Airbnb. 

 
By opting out, you will be responsible for remitting 15% GST to IRD on the accommodation price and cleaning fees for listings in New Zealand booked on or after 1 April 2024. You will also be responsible for administering the flat-rate credit and passing on the 8.5% flat-rate credit to Hosts who are not GST-registered and must also meet all requirements under the flat-rate credit provisions. 

If you wish to opt out, please fill in this Google Form as soon as possible. 

SUMMARY 

That’s a lot of information to absorb. In short, you need to update all platforms (unless you use a property manager and they control your property), with your GST status and consider whether to adjust your nightly rates for GST. 

Understand how each platform is going to be charging your guests. They will be adding GST to your nightly rate. You’ll need to provide a GST exclusive rate if you wish to keep your rates the same as before 31 March 2024. 

Booking.com is assuming you meet the opt-out rules and you have t inform hem if you don’t. This is important as the opt out rules only apply if you have more than $500,000 in revenue, sell 2,000 bed nights or are a listing intermediary (property manager). Most of you will need to update your Booking.com details and opt back in. 

We’ll keep you updated as we learn more, but please do check your booking platform for the latest information and policies. 

If there is anything you wish to discuss, please contact us.