Verified for 2026 Tax Year

Airbnb & Short-Term Rentals GST

Navigating the new "App Tax" rules, the $60k threshold, and the 8.5% flat-rate credit for unregistered hosts.

If you rent out your bach, investment property, or a spare room on platforms like Airbnb, Bookabach, or Holiday Houses, you are providing "taxable supplies".

From 1 April 2024, the "App Tax" rules (Platform Economy rules) completely changed how GST is applied to these bookings in New Zealand.

The App Tax Rule

The Marketplace Operator (e.g., Airbnb, Booking.com) must collect and pay GST (15%) on all accommodation bookings, regardless of whether you (the host) are registered for GST or not.

How the App Tax Works (Unregistered Host)

1. Guest pays $115 total (includes $15 GST)

2. Platform (Airbnb) collects the $15 GST

6.5% to IRD

Platform pays to IRD

8.5% to Host

Flat-Rate Credit

Host Status Scenarios

Standard Hosts (Not GST Registered)

If your turnover is under $60,000, you don't need to register for GST.

✓ You: Do not charge GST to guests directly.
✓ The Platform: Charges 15% GST on the listing price.
✓ The Credit: The Platform passes on an 8.5% "Flat-Rate Credit" to you. This is deemed income tax-free to compensate you for the GST costs you can't claim on your expenses.

Registered Hosts (Over $60k Turnover)

If your total taxable supplies exceed $60,000, you must register.

✓ You: File GST returns as normal.
✓ The Platform: Still collects the 15% GST and pays it to IRD.
✓ Your Return: You report the sale as zero-rated (because the platform paid the tax). You claim GST on your expenses (cleaning, rates, insurance).
✗ No Credit: You do NOT receive the 8.5% flat-rate credit.

Mixed Use Asset Rules (Audit Risk)

If you use the bach yourself for more than 18 days and rent it out for more than 62 days, strict "mixed-use" rules apply:

You must strictly apportion your expenses between business and private use.
If your rental income is less than 2% of the property's rateable value, you might be opted out of the tax system entirely (known as Quarantined Expenditure), meaning you cannot claim losses.

Can I Opt Out?

If you are a large commercial hotel (over 2,000 nights/year), you can opt out of the platform rules and handle your own GST. However, for almost everyone else (small Airbnb and Bookabach hosts), the platform must collect the tax. You cannot opt out just because you don't like the new system.

Frequently Asked Questions

Do I have to register for GST if I rent out my Airbnb?

If your total turnover from taxable supplies (including the Airbnb rent) is under $60,000 in a 12-month period, you do not need to register. However, the platform (Airbnb) will still collect 15% GST from the guest under the new App Tax rules.

What is the 8.5% Flat-Rate Credit?

If you are an unregistered host, the platform collects 15% GST on the booking. They send 6.5% to the IRD and pass 8.5% back to you as a Flat-Rate Credit to compensate you for the GST costs on your expenses that you cannot claim.

Can I opt out of the App Tax rules?

Only large commercial operators (e.g., hotels with over 2,000 nights per year) can opt out of the platform rules and handle their own GST. Standard small Airbnb hosts cannot opt out; the platform must collect the tax.

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