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New GST rules will be in place from 1/4/2024 for all suppliers who perform or provide listed services in NZ through an online marketplace such as websites or apps to make the sale.

Listed services include:

  • Ride-sharing (services that are provided through an electronic marketplace that involves the engagement of a personal driver to transport a person to their chosen destination) 
  • Food and beverage delivery (i.e., Uber, Menulog, Delivereasy) • Short-stay accommodation (i.e., Airbnb) 
  • Closely connected services (i.e., cleaning service, where a fee is charged as part of the overall supply of a listed service made through an electronic marketplace. Exclusion applies to separate services provider such as foreign exchange reserve) 

Reference: S 8C(2)(7)(8), GST Act 1985

If you are not GST-registered: Flat-rate credit scheme

  1. Flat-rate credit from GST

    From 1/4/2024, the online marketplace operators will be collecting 15% GST on the listed services performed in NZ. From above, 6.5% will be paid to the IRD, and remaining 8.5% will be pass to you (the drivers/hosts). This means that the non-GST-registered suppliers will benefit from this new scheme with additional earning of 8.5%. 

    More information and examples can be found at below link:
  2. Flat-rate credit for income tax:

    The flat-rate credit (8.5% return on sales) received by the suppliers is treated as excluded income for income tax purposes.
  3. Income tax expenditure if you receive Flat-rate credit:

    Expenditure related to income derived exclusively through an online marketplace shall be deducted on a GST-exclusive basis. Expenditure related to income derived from other activities will continue being deducted on a GST-inclusive basis. If a person has mixed purpose expenditure – being expenditure related to deriving income through an electronic marketplace and through other means, the proportion method will apply.
  4. Value booked for fixed assets purchased:

For persons not registered for GST, the value of depreciable property for depreciation purposes will continue to be calculated on a GST-inclusive basis (if GST applies). 

Reference: S 8C(3)(b)(ii), S 20(3N), and S 20(3)(de) , GST Act 1985 
S CX 1(c) and S SB2(2B), Income Tax Act 2007

If you are GST-registered:

  1. Provide your GST details: You are required to provide the online marketplace operator the below information:

    • Your name

    • Your IRD number

    • Your GST registration status

      Reference: S 60H(1)(2), GST Act 1985

  2. GST return filing

    When filing your GST return, you will need to follow the below GST rates on the sales and purchases:

  Through Online Marketplace Not Through Online Marketplace
Sales Zero-Rated 15% GST on income 
Purchases 15% GST on expenses 15% GST on expenses


Please note that if you did not provide the GST information (registration status and IRD number) to the online marketplace operator, the same flat-rate credit rule will apply as you will be treated as non-GST-registered. If you receive a flat-rate credit (8.5% on your sales) when you are GST registered, you are required to return to the IRD by making a debit adjustment in your GST return. Failure to do so will result in a penalty charged by the IRD.

Reference: S 8C(3), S 20(3JD), S 20(4E), S 60(1C), and S 11A(jc), GST Act 1985

Discount provided by online marketplace:

In the case the online marketplace provides a discount on a service, the service provider still receives the full amount of service see; while the online marketplace will need to return the GST on the amount which the recipient actually paid.


Host A listed a room for $500 + GST = $575 per night, online marketplace B provided a discount of $20. The recipient C pays $500*1.15 - $20 = $555.

Host A receives his service fee for $500 (GST exclusive value), Marketplace B will return the GST on actual payment amount $555 which is $72.39 (3/23 * $555) to the IRD.

Reference: S10(7D), GST Act 1985

Large accommodation hosts can opt-out:

Large accommodation hosts can choose to opt-out from the marketplace GST rules and carry on collecting and returning GST before the rules apply from 1/4/2024 if they meet the one of the below criteria:

  1. A non-individual which makes more than $500,000 of supplies in a 12-month period, or
  2. A 2000-night threshold is met through a single online marketplace.

Reference: 60C(2BB), (2BC), (2BD), (2BE), and (2BF), 60H(3), and 85D, GST Act 1985

New Zealand Tax Accountant.