New Zealand GST Changes 2025: Key Compliance Rules for Online Marketplaces

March 17, 2025

New Zealand Parliament proposed GST changes for specific services and sectors, including online marketplaces, ride-sharing, food delivery, and short-term accommodation rentals. The proposed changes include the deduction rules for flat-rate credits, the timing for accounting for GST on accommodations, taxable supply information, and opting out of the marketplace rules.

Impact on In-Scope Taxable Persons

Under the newly proposed deduction rule for flat-rate credits, online marketplaces, and accommodation listing intermediaries can claim credit adjustments for flat-rate credits, which they pass onto a seller only if they provide the seller’s name, IRD number, and GST registration status.

New rules for accounting GST on accommodation provide more options for when GST can be accounted for. The rules state that it must be accounted for at the latest seven days after the check-out. However, GST can be accounted for as early as the check-in date.

Furthermore, rules state that online marketplaces have 28 days to provide taxable supply information to listed service recipients. The exemption to this rule is allowed when online sellers opt out of the marketplace rules.

Additionally, proposed changes define that accommodation owners that use a listing intermediary and generate more than NZD 500,000 in 12 months must inform the listing intermediary if they want to opt out of the marketplace rules.

Conclusion

Although not officially adopted, the information released by the Parliament and Inland Revenue provides valuable insight and guidance on GST compliance for companies and businesses operating in these sectors.

As announced by the legislative and governing bodies, proposed GST changes for listed services are expected to be effective by the end of March. Once the final version of the Bill is adopted, the Inland Revenue will release additional information relevant to all in-scope taxable persons.

Until then, taxable persons that fall under the scope of proposed changes should prepare for imminent new GST rules and adjust their accounting and administrative procedures and systems accordingly.

Source: Inland Revenue, New Zealand Parliament

What are the key GST changes proposed for online marketplaces in New Zealand?

The proposed changes impact online marketplaces, ride-sharing, food delivery, and short-term accommodation rentals. Key updates include deduction rules for flat-rate credits, revised GST accounting timelines for accommodations, and new taxable supply information requirements.

How do the new flat-rate credit deduction rules affect online marketplaces?

Online marketplaces and accommodation listing intermediaries can claim flat-rate credit deductions only if they provide the seller’s name, IRD number, and GST registration status.

When must GST be accounted for on short-term accommodation under the new rules?

GST must be accounted for no later than seven days after check-out, but it can be reported as early as the check-in date, giving businesses more flexibility.

What are the requirements for providing taxable supply information?

Online marketplaces must provide taxable supply information to service recipients within 28 days, unless sellers have opted out of marketplace rules.

Who can opt out of the marketplace GST rules?

Accommodation owners generating over NZD 500,000 in a 12-month period through a listing intermediary must inform the intermediary if they wish to opt out of the marketplace rules.

When will New Zealand’s proposed GST changes take effect?

The new GST changes are expected to be effective by April 2025, pending final adoption by the New Zealand Parliament and Inland Revenue.

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