GST on Online Marketplace Services in New Zealand: Inland Revenue Guidelines Explained

The Inland Revenue Department published informative guidelines on the GST rules for marketplace operators supplying ridesharing, ride-hailing, and delivery services for food and beverages. The guidelines also include GST-related information for marketplace operators and listing intermediaries engaged in the supply of accommodation services.

In addition to clarifying and interpreting relevant rules, the guidelines provide examples that help taxable persons better understand them.

Key GST Rules for Marketplace Operators

Under the 2024 Taxation Act, since April 1 last year, the supply of ridesharing, ride-hailing, and delivery services for food and beverages, and the supply of accommodation services through online marketplaces, are subject to GST, whether the person providing the services through the electronic marketplace is registered for GST or not.

Therefore, marketplace operators became liable for collecting and remitting GST on supplies of listed services as if they were the ones providing the service. However, for this rule to apply, marketplace operators must exceed the GST registration threshold of NZD 60,000 in 12 months.

In addition to exceeding the registration threshold, marketplace operators must fulfill other requirements to be treated as suppliers. Thus, marketplace operators must charge for the supply of listed services to the recipient, deliver the listed services to the recipient, or set a term or condition under which the supply of listed services is made, whether directly or indirectly.

Both domestic and foreign marketplace operators may be subject to New Zealand's GST if they meet the set threshold and other requirements.

Conclusion

Online marketplace operators providing services to consumers in New Zealand may use the guidelines provided by the Inland Revenue Department to determine to what extent the regulations apply to them and their obligations under the defined rules.

As New Zealand continues its work on the tax framework to address the challenges of the digital economy, these rules reflect a broader global trend of holding digital platforms accountable for the transactions they enable.

Source: Inland Revenue Department - Tax Information Bulletin