The sharing economy is any economic activity through an online marketplace (also known as a digital platform) such as a website or an app, where people share assets or services for a fee.
Sharing economy activities
Popular sharing economy activities include:
- ride-sharing services for a fare, through platforms such as Uber, Zoomy or Ola
- food and beverage delivery
- short-stay accommodation including renting out a room or a whole house or unit, through platforms such as Airbnb, Bookabach or Holiday Houses
- sharing assets, including cars, caravans/RVs, car parking spaces, storage space or personal belongings, through platforms such as Yourdrive, Mighway, Parkable, MyCarYourRental and Sharedspace
- personal services, including creative or professional services like graphic design, creating websites, or odd jobs like deliveries and furniture assembly, through platforms such as Pocket Jobs, Fiverr, Air Tasker, WeDo, Askatasker and Mad Paws.
If you provide services or assets through an online marketplace for a fee, you need to consider how income tax and goods and services tax (GST) applies to your fees earned.
Your obligations for GST depend on the type of services you provide - listed services or non-listed services.
What listed services are
Listed services include:
- ride-sharing and ride-hailing
- food and beverage delivery
- short-stay and visitor accommodation. (Accommodation used by the customer as their principal place of residence is exempt.)
From 1 April 2024 if you are a driver, deliverer or accommodation host providing these services in New Zealand using an online marketplace, new marketplace rules for GST apply.
What non-listed services are
Non-listed services are any services that are not listed services for example sharing assets and creative or professional services.
The ordinary GST rules apply.