About pricing your New Zealand property if you aren’t GST-registered

As of April 1, 2024, Vrbo will take the following actions for New Zealand properties as required under New Zealand’s GST rules for electronic marketplace operators if you are not GST-registered:

Add 15% GST on your total rate (including fees charged by you for the room and closely connected services such as cleaning and change of linen)
Pay you 8.5% on top of your total rates and fees as a flat-rate GST credit

Important: If you haven't provided Vrbo an answer regarding your GST registration status, we will not pay the 8.5% flat-rate GST credit to you.

Refer to New Zealand’s Inland Revenue Department (IRD) and your communications from Vrbo for more details.

Pricing impact

The addition of 15% GST to your total rates and fees* might make your property up to 15% more expensive to travelers. To reduce the impact of New Zealand’s GST rules, consider adjusting your rates and fees.*

Options to consider

Important: The three options and the numbers given in the table are for example only. You are still able to set your loaded total rate to any value you want.

Review the following sample options and table to help you find the best approach for your needs:

Option 1: Do nothing (do not change your rates and fees).
Option 2: Use the 8.5% flat-rate credit Vrbo pays out to you to offset part of the 15% GST that gets charged to the traveler (your total payout, composed of the rates and fees and flat-rate credit, will remain the same).
Option 3: Fully absorb the added 15% GST so the traveler pays the same total amount (including GST) as before April 1, 2024.

The following table shows an example of each option assuming your total rate* is $100 NZD.

	Option 1	Option 2	Option 3
Total rate including fees (to be adjusted by you)	100	92.17*	86.96
Total rate and fees with GST to be paid by the traveler	115	106	100
GST amount to be paid by Vrbo to tax authority (IRD)	6.5	5.99	5.65
Amount of rate and fees (excluding Vrbo commissions) to be received from Vrbo	100	92.17	86.96
Amount of flat-rate credit to be received from Vrbo (excluding Vrbo commissions)	8.5	7.83	7.39
Total amount (excluding Vrbo commissions) to be received from Vrbo	108.5	100	94.35

More information

AD277 GST on listed services (PDF) for accommodation hosts, drivers, and deliverers
AD278 GST on listed services (PDF) for online marketplace operators

*This is to be used as a percentage to calculate your new rates and fees. For example, if your current total rate (including fees) is $350, and you want to follow option 2, the new total rate (including fees) would be $350*92.17%=$322.60.