Short-stay accommodation through platforms like Airbnb can be a great way to earn extra income, but it often raises a tricky question:
Does it make sense to register for GST if you’re earning from Airbnb?
With recent changes to GST rules in New Zealand, the answer is no longer a simple yes or no. In this post, we break down what’s changed, what it means for Airbnb hosts, and when GST registration can actually work in your favour.
What Changed With GST and Short-Stay Accommodation?
From 1 April 2024, new GST rules came into effect for short-stay accommodation booked through online marketplaces like Airbnb and Bookabach.
Under these rules, the marketplace is treated as the supplier for GST purposes. This means:
Airbnb now charges 15% GST to guests on short-stay accommodation.
Airbnb is responsible for returning the GST to Inland Revenue, not the host.
These rules apply even if you are not GST-registered.
To recognise that many hosts incur GST on expenses, Inland Revenue introduced a flat-rate credit system.
What Is the Flat-Rate Credit?
If you are not GST-registered, Airbnb will pass on a flat-rate credit (currently 8.5%) of the GST-exclusive accommodation charge to you.
This credit is designed to roughly compensate hosts for GST paid on expenses like:
Cleaning
Maintenance
Power and internet
Insurance
For many casual or low-expense hosts, this may be enough — and registering for GST may not be necessary.
When Registering for GST Can Be Beneficial
Despite the flat-rate credit, GST registration can still make sense in certain situations.
Example 1: High Set-Up or Renovation Costs
If you’ve spent significant money setting up your Airbnb — renovations, furniture, appliances — registering for GST may allow you to claim back the GST on those costs, which can be substantial.
Example 2: Ongoing High Expenses
If your property has high ongoing costs (professional cleaning, property management, repairs), the actual GST on expenses may exceed the flat-rate credit, making GST registration more favourable.
Example 3: You’re Already GST-Registered
If you’re already registered for GST for another business, Airbnb income may need to be included anyway. In these cases, opting out of the marketplace rules and returning GST yourself can provide better visibility and control.
When GST Registration May Not Be Worth It
GST registration does come with extra admin — filing returns, keeping records, and understanding how GST applies to mixed-use properties.
For hosts with:
Low expenses
Occasional or part-time Airbnb use
No major recent purchases
…the flat-rate credit may be the simplest and most cost-effective option.
The Bottom Line
The new GST rules have simplified things for many Airbnb hosts, but they’ve also created new planning opportunities.
There’s no one-size-fits-all answer. Whether GST registration makes sense depends on your income level, expenses, future plans, and whether your Airbnb is part of a wider business.
At Accountech, we specialise in helping creative founders and property owners understand these rules in plain English — and choose the option that works best for them.
If you’re unsure where you land, we’re always happy to help.
Disclaimer: This blog post is for informational purposes only and should not be construed as professional advice. It is recommended to seek the advice of a qualified accountant or tax professional regarding your specific circumstances.