Managing Your Airbnb Property in New Zealand: Navigating the 2024 GST Changes

6/8/20242 min read

white and red wooden house miniature on brown table
white and red wooden house miniature on brown table

Introduction

Airbnb has become a popular platform for property owners to rent out their spaces to travelers. However, with the recent Goods and Services Tax (GST) changes in New Zealand, hosts need to stay informed and compliant. In this blog post, we’ll explore the key points you should know about managing your Airbnb property in light of the new GST rules.

1. GST Collection and Remittance by Airbnb

As of April 1, 2024, Airbnb is required to collect and remit 15% GST on the accommodation price and any cleaning fees for listings in New Zealand. Here’s how it works:

  • Non-GST Registered Hosts: If you’re not GST-registered or haven’t provided Airbnb with a GST number, they will collect 15% GST from guests and pass an 8.5% flat-rate credit to you. The remaining 6.5% is remitted directly to the Inland Revenue Department (IRD).

  • GST-Registered Hosts: If you’re GST-registered and have provided your GST number to Airbnb, they’ll collect and remit 15% GST on your accommodation price and cleaning fee. You won’t receive a flat-rate credit, but you can continue claiming GST on costs incurred.

2. Opting Out

Some hosts may qualify for an exemption from the marketplace rules. Criteria include having 2,000 or more nights available on Airbnb in a 12-month period or being a listing intermediary. If you meet these criteria and wish to opt out, contact Airbnb’s Community Support team.

3. Claiming GST on Costs

To maximize your tax benefits, consider the following when claiming GST on costs related to your Airbnb property:

  • Eligible Costs:

    • You can claim GST on expenses directly related to your rental property, including:

      • Repairs and Maintenance: Costs incurred to keep the property in good condition.

      • Utilities: Electricity, water, gas, and internet bills.

      • Cleaning Services: If you hire professional cleaners.

      • Insurance Premiums: Property insurance.

      • Rates and Body Corporate Fees: Council rates and fees for shared facilities (if applicable).

      • Advertising Costs: Promoting your listing.

      • Commissions and Fees: Airbnb service fees, property management fees, and booking platform charges.

  • Keep Detailed Records:

    • Maintain accurate records of all expenses, including invoices, receipts, and bank statements.

    • Use accounting software or spreadsheets to track costs and categorize them appropriately.

  • Apportionment Rules:

    • If you use the property for both personal and rental purposes (e.g., home office or occasional stays), apportion costs based on actual usage.

    • Seek advice from an accountant to handle mixed-use expenses effectively.

Remember, understanding the rules and staying informed will help you manage your Airbnb property effectively while complying with the new GST regulations.