The Business Advisory Blog

The Business Advisory Blog

Insight, news and updates from Alliott NZ Chartered Accountants, Auckland New Zealand. The views expressed here are the views of the author and should be discussed in further detail should an article be relevant to your individual circumstances.

While every effort has been made to provide valuable, useful information in this publication, this firm and any related suppliers or associated companies accept no responsibility or any form of liability from reliance upon or use of its contents. Any suggestions should be considered carefully within your own particular circumstances, as they are intended as general information only.

Greg Millar
Published on

What to know if you rent out your holiday home or provide services online

Do you rent out a bach on Airbnb or do some driving on Uber for extra income? If so, there are more tax changes you need to know about.

From 1 January this year, platforms such as Uber and Airbnb will collect information from their users including sales income and IRD numbers, and will be required to share it with Inland Revenue and relevant overseas tax authorities by early 2025.

The requirement applies to online marketplaces in the ‘sharing economy’ that connect service providers with customers (for example, the owner of a holiday home with short-term tenants, or a driver with riders).

As well as short term accommodation and ride-sharing services, this covers people who provide assets such as cars, caravans, parking, or storage space, personal services such as graphic design on platforms like Pocket Jobs, or who deliver food on apps like Delivereasy. It also covers tradespeople who provide services to customers through online platforms.

Additionally, from April, people who rent out their bach on Airbnb or Bookabach, drive for Uber or other ride-sharing platforms, or who deliver food and beverages through online platforms should be aware that their online marketplaces are required to collect and return GST of 15%. This applies whether the seller is GST-registered or not, though the rules work a bit differently for people who aren’t registered for GST.

What we need from you

If you provide services on an online marketplace, you’ll still need to declare all income in your tax return and keep records of income earned and expenses incurred. If you would like more information on how the GST rules will apply to you, please contact Alliott NZ Chartered Accountants in Auckland on 09 520 9200.

Topics: ecommerce Gst property sharing economy tax trade businesses