From 1 April 2024 Holiday Houses is required to collect and remit GST on all bookings made on the site.
We’re required to do this regardless of whether you’re registered for GST or not, however, the calculations change if you aren’t registered for GST.
This is a result of recent legislation changes and more information can be found on the IRD website here.
You should ensure that all prices on your listings are inclusive of GST. Information on how to update your rates can be found here.
For all payments made to you after 1 April 2024, Holiday Houses is required to deduct GST. If you are not registered for GST we will make a 15% GST deduction but you will receive a flat rate credit back of 8.5%. This means that the net deduction will only be 6.5% and we will remit this to the IRD.
Example 1 - for an owner who is not registered for GST
House listed for $100 per night and the renter books for two nights.
The renter pays 200.00
Less GST 26.09
Plus Flat rate credit 14.78
Less 9% commission 18.00
You receive 170.69
Example 2 - for an owner who is registered for GST
House listed for $100 per night and the renter books for two nights.
The renter pays 200.00
Less GST 26.09
Less 9% commission 18.00
You receive 155.91
FAQs
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Is this just Holiday Houses doing this?
No, all online marketplaces supplying short-stay or visitor accommodation are required to comply with the new legislation. This includes other major online accommodation marketplaces.
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How do I account for the GST Holiday Houses has deducted on my behalf?
The IRD states “GST-registered sellers will need to include the supply of listed services sold through an online marketplace as a zero-rated supply in their GST return.They will still be able to claim GST on their costs of making supplies of listed services.”
You should review the information provided on the IRD website and/or contact your accountant for advice specific to your situation.
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What happens if I am the property manager of the house listed on Holiday Houses but I do not own the house?
We are still required to deduct GST on all payments made to you. You will need to provide the GST status and details of the underlying supplier (the homeowner).
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What if I am not registered for GST?
We are still required to deduct 15% GST from any amounts paid to you from 1 April 2024. However, if you are not registered for GST you will receive a 8.5% flat rate credit returned to you. In effect this means that the net deduction will only be 6.5%.
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I want to change my listing to Pay per House (PPH).
You are welcome to change your listing to PPH and can update your listing by logging in to your Holiday Houses account. You should discuss the tax implications of this with your accountant.
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What if my house is not in New Zealand
Properties located outside of New Zealand are not included in these changes.
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I am GST registered so already declare and pay GST on my booking income.
The new legislation that comes into effect from 1 April 2024 requires all platforms like Holiday Houses to deduct GST from all amounts paid to owners regardless of whether you are registered for GST or not. The IRD states “GST-registered sellers will need to include the supply of listed services sold through an online marketplace as a zero-rated supply in their GST return. They will still be able to claim GST on their costs of making supplies of listed services.” You should review the information provided on the IRD website and/or contact your accountant for advice specific to your situation.