New Zealand Digital Platform Reporting: Key Details for Early 2025

In 2023, the New Zeeland Inland Revenue announced that starting in 2024, the reporting obligation for digital platforms based on the OECD Model Rules for Reporting by Platform Operators with respect to Sellers in the Sharing and Gig Economy will be introduced.

Under these rules, digital platforms based in New Zealand must collect and report data on sellers who receive fees relating to specified services by utilizing digital platforms. The annual reporting deadline is also nearing as the end of 2024 approaches.

Digital Platforms Information Requirements

Resident digital platform operators that allow sellers to use their digital platforms to provide in-scope services to end users must collect and report specific information to Inland Revenue. These in-scope services include renting commercial, short-term, visitor accommodation, or personal services. 

Personal service refers to services that are time or task-based work executed by one or more individuals at the end user's request, such as ride-sharing, food and drink delivery, and graphic and web design services.

Under these requirements, digital platform operators must collect data about these sellers, such as which services they provide and how much revenue they generate from these services through their platforms. The due date for initial reports under the new requirements is February 7, 2025.

Digital platform operators that do not comply with these requirements may face penalties of NZD 300 for each case when the information is not collected and reported, which should have been, with the maximum penalty set at NZD 10,000 per reporting year.

Additionally, Inland Revenue can impose penalties of NZD 20,000 for not taking reasonable care regarding data collected for the first breach. Repeating the breach could lead to a penalty of NZD 40,000, whereas the maximum penalty for this violation is NZD 100,000 for the reporting year.

Conclusion

This is the first year the resident digital platform operators must collect and report information sellers under the new rules and requirements. With the deadline for submitting annual reports approaching, digital platforms should work actively on preparing the reports and due diligence, meaning confirming and verifying the correctness of collected information.

Additionally, digital platform operators should be careful not to miss the deadline for submitting these reports. Consequently, they might face penalties.

Source: EY, Inland Revenue