What is New Zealand GST for Short-Term Rentals?

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How it works

Under the current rules, online marketplaces like Airbnb, Vrbo, and Booking.com are responsible for the GST on accommodation they sell. When a guest books a stay, the platform charges the guest 15% GST on top of the booking total.

The platform then remits this tax directly to New Zealand's Inland Revenue Department (IRD). If the host is not GST-registered, the platform passes an 8.5% 'flat-rate credit' of the pre-tax income back to the host to approximate the GST they pay on their expenses.

If the host is GST-registered, the platform passes the full 15% GST amount to the host, who is then responsible for filing their own GST return and claiming input tax credits as usual.

Why it matters

Understanding these GST regulations is critical for legal compliance and accurate financial management for New Zealand-based hosts. The rules impact pricing strategy, as GST is now applied consistently across platform bookings, affecting the final price for guests.

For non-GST-registered hosts, the system simplifies tax remittance but requires them to account for the 8.5% flat-rate credit in their income. For GST-registered hosts, it changes cash flow dynamics, as they receive the GST amount from the platform before filing their return with the IRD.

Examples

• A host who is not GST-registered earns NZ$40,000 annually through bookings on Vrbo. For a NZ$1,000 booking, Vrbo collects NZ$1,150 from the guest, remits the NZ$150 GST to the IRD, and pays the host NZ$1,085 (the NZ$1,000 base income plus an 8.5% flat-rate credit of NZ$85).
• A GST-registered property manager earns NZ$200,000 annually. For a NZ$2,000 booking made on Airbnb, the platform collects NZ$2,300 from the guest. Airbnb passes the full NZ$2,300 (NZ$2,000 income + NZ$300 GST) to the manager, who then reports the NZ$300 GST output tax on their next GST return.
• A host takes direct bookings through their own website, created using software like Lodgify, and grosses NZ$80,000 per year. Because they exceed the NZ$60,000 threshold and are not using a marketplace to collect the tax, they must personally register for GST, charge their guests 15% GST, and file regular GST returns with the IRD.
• An owner lists their property on a marketplace but also rents it out for over 28 consecutive days to the same person. This portion is considered a long-term residential rental and is exempt from GST, so the marketplace rules for GST collection do not apply to that specific booking.