New Zealand GST Rules for Short-Stay Accommodation Explained

The New Zealand Inland Revenue (Revenue) published a draft interpretation statement updating its earlier guidance on the GST treatment of short-stay accommodation. Moreover, in the statement, the Revenue explains how GST applies when hosts, whether individuals or businesses, provide short-stay accommodation directly to guests or through electronic marketplaces such as Airbnb or Bookabach.

Key Takeaways from the GST Statement

The interpretation of the GST rules is written from the perspective of someone entering this activity for the first time. It follows the full lifecycle of providing short-stay accommodation as a taxable activity, from deciding whether and when to register for GST, through ongoing GST obligations, to eventual de-registration. 

As such, the statement clarifies how GST applies depending on whether accommodation is supplied in the host’s own home, a holiday home, or a property used solely for short-stay accommodation, regardless of whether only a room, a separate sleepout, or the entire property is made available to guests. 

The statement underlines that the supply of short-stay accommodation is treated as a taxable supply for GST purposes and is not exempt. Regarding GST registrations, for most hosts, the key issue is whether the short-stay accommodation is provided on a continuous or regular basis, with occupancy and the presence of regular-paying guests being important indicators, although not decisive on their own. Notably, occasional or one-off rentals, such as letting out a room for a single sporting event, are generally insufficient to constitute a taxable activity.

However, once the host’s taxable supplies exceed NZD 60,000 in any 12 months, the host is required to register for GST, although voluntary registration is possible below this threshold. Registering for GST implies other obligations, such as filing GST returns and accounting for output tax on accommodation supplies. 

Additionally, the GST treatment is influenced by whether accommodation is supplied through an electronic marketplace or directly to guests, and registered hosts may claim input tax deductions on costs incurred in making taxable supplies. Where a host acquires goods or services used partly to make taxable supplies of short-stay accommodation and partly for other purposes, such as private use or exempt or non-taxable supplies, the input tax cannot be fully deducted. It must instead be apportioned according to actual or intended use.

Conclusion

Although the statement provides a detailed explanation of the GST treatment for short-stay accommodation, the text remains a draft. It is subject to public consultations open until February 16, 2026. Therefore, all interested parties may use this information as guidelines and provide valuable feedback, which may further contribute to interpretation.

Source: New Zealand Inland Revenue