Ngā wāhi noho rangitahi, mā ngā manuhiri hoki Short-stay and visitor accommodation

Short-stay and visitor accommodation is when you're renting out your residential property to guests for up to 4 consecutive weeks at a time.

Examples of property rental online marketplaces are Airbnb, Bookabach and Holiday Homes.

About short-stay and visitor accommodation 

Your guests do not see your property as their main home.

Short-stay and visitor accommodation includes:

• a room in your house
• your whole house
• another residential property – not your main home such as an investment property or a property you intend to sell
• a cottage, caravan or sleep-out on your property
• a holiday home.

Short-stay and visitor accommodation does not include accommodation for residential tenants, boarders, or care home residents. It also does not include student or emergency accommodation.

Income tax obligations

So that you can calculate your income and expenditure correctly you:

• need to keep records of all income earned and declare it in your income tax return, subject to some limited income exemptions
• need to keep records of expenses you can claim as deductions.

Flat-rate credit scheme

From 1 April 2024, online marketplaces must collect GST at the standard 15% rate on sales of short-stay and visitor accommodation and pass on 8.5% to you if you are not registered for GST. This flat-rate credit is for you to keep.

You can choose to include the flat-rate credit as assessable income in your income tax return or not – it’s up to you.

Flat-rate credits and income tax

GST obligations

Your online marketplace will collect and pay GST on all short-stays rented through their platform.

For GST you must:

• tell your online marketplace your name, IRD number and GST registration status and if it changes
• register for GST if you have earned or will earn more than $60,000 from all taxable activities including short-stay and visitor rental income in any 12-month period
• keep all records of your income and expenses.

Opting out of the marketplace rules

There are opt-out rules for large GST-registered accommodation owners. If you meet the criteria, you can be responsible for the GST obligations including collecting and paying GST and providing taxable supply information to customers.

You will need to provide taxable supply information within 28 days of a request for it by the customer. 

Opt-out rules for large accommodation owners

There are options for when GST on the supply of accommodation, and closely connected services, made through an online marketplace can be accounted for. These options are also available to an accommodation owner who has opted out of the marketplace rules.

Timing of GST on accommodation

Long-term accommodation provided through an online marketplace

There's no GST to pay on rental income from long-term residential renting. You also cannot claim GST on your long-term rental expenses.

This is generally the case if the accommodation is used by the customer as their home and comes under the Residential Tenancies Act 1986.

GST applies to all supplies of accommodation in a commercial dwelling, for example a hotel, motel, boarding house, or camping ground, regardless of the length of time the accommodation is provided for.

The rules that allow for a reduced rate of GST for accommodation provided for 4 weeks or more do not apply if the accommodation is supplied through an online marketplace.

When you get paid directly by guests

When guests pay you directly, the online marketplace may still have to account for GST on the supply. This is the case when they are treated as the supplier of the services.

The online marketplace may collect the GST they owe us from you directly.

When this occurs, the online marketplace may ask you for information so they can meet their GST obligations. This may include asking you for the amount paid and the date of the payment for the service.

Listing short-stay and visitor accommodation using a property manager or agent

You may use a listing intermediary who lists short-stay and visitor accommodation on an online marketplace on your behalf. Common examples are property managers and agents.

In certain circumstances the listing intermediary may collect and pay the GST on the accommodation (and any connected services) supplied through the marketplace.

The listing intermediary will administer the flat-rate credit scheme. You can read more about this.

Drivers, deliverers and accommodation owners

Transitional rule for accommodation bookings made before 1 April

The transitional rule means online marketplaces and listing intermediaries (such as certain property managers) do not have to use the marketplace rules for short-stay accommodation booked before 1 April 2024.

If you are GST-registered and your online marketplace or listing intermediary lets you know they are using the transitional rule, you need to collect and pay GST on the relevant bookings under the normal rules.

If you are not GST-registered, you do not need to do anything. If your online marketplace or listing intermediary uses the transitional rule, you will not get any flat-rate credits for the relevant bookings.

More information

You can read more about your income tax and GST obligations when you rent out residential property.

Renting out residential property