What to know if you rent out your holiday home or provide services online

Do you rent out a bach on Airbnb? Do some driving on Uber? If so, there are some tax changes you need to know about.

From 1 January 2024, platforms such as Uber and Airbnb collect information from their users including sales income and IRD numbers, and are required to share it with Inland Revenue and overseas tax authorities by early 2025. The requirement applies to online marketplaces in the ‘sharing economy’ that connect service providers with customers.

As well as short term accommodation and ride-sharing services, this covers providers of assets such as cars, caravans, parking, or storage space, personal services such as graphic design on platforms like Pocket Jobs, or food delivery on apps like Delivereasy. It also covers tradespeople who provide services to customers through online platforms.

Additionally, from April, people who rent out their bach on Airbnb or Bookabach, drive for Uber or other ride-sharing platforms, or who deliver food and beverages through online platforms should be aware that their online marketplaces are required to collect and return GST of 15%. This applies whether the seller is GST-registered or not, though the rules work a bit differently for people who aren’t registered for GST.

What we need from you

If you provide services on an online marketplace, you’ll still need to declare all income in your tax return and keep records of income earned and expenses incurred. If you would like more information on how the GST rules will apply to you, please contact us.

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