As of April 1, 2024, Vrbo/Bookabach needs to collect and remit GST on rates to the Inland Revenue Department (IRD) as required by New Zealand’s GST rules for online marketplace operators.

Important: This article and its frequently asked questions (FAQs) apply to all owners and managers with properties in New Zealand. If you're an integrated property manager, this article doesn’t apply to you, but you may need to collect and remit GST as an online marketplace operator to comply with New Zealand’s GST rules. 

GST rule compliance

Vrbo/Bookabach will collect and remit GST for bookings made on or after April 1, 2024. 

For example, if a booking was made in January 2024 for a stay from March 31-April 2, 2024, the GST rules do not apply and Vrbo/Bookabach will not collect and remit GST to the IRD because the booking was made in January. 

If you are not GST-registered, Vrbo/Bookabach will take the following actions for New Zealand properties beginning April 1, 2024:  

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

Refer to New Zealand’s IRD and your communications from Vrbo/Bookabach for more details. 

Important: If you’re a property owner, or property manager that qualifies as a listing intermediary, and want to account for output GST for your bookings, we regret to inform you that you could consider stopping offering your listing as of April 1, 2024, or risk that your properties will be taxed with GST twice (at least until we have updated systems to allow you to keep on accounting for your own 15% GST to the IRD). 

GST and booking changes

Scenario

Example

GST application

Cancellation with partial refund

The booking is cancelled and the guest receives a 50% refund

If the traveler makes a booking for $100 + $15 (GST), then cancels it, and only 50% of the amount is refundable, the traveler will get (100+15)/2= $57.5 refund.

Reservation value changes after booking

The guest adds extra nights

If the initial booking was made before April 1, 2024, the GST rules do not apply. 

If the booking was made on or after April 1, 2024 and the reservation value changes, then the adjustment will also be subject to GST. 

FAQs

What do I need to do? 

For specific instructions and more information about GST rule compliance, go to the help article that applies to your role: 

Can I opt out? 

Important: While you can opt out if you meet the conditions, we do not recommend opting out on the Vrbo/Bookabach platforms because of the risk that your properties will be taxed with GST twice (at least until we have updated systems to allow you to keep on accounting for your own 15% GST to the IRD). 

According to the GST legislation, you can opt out if you meet either of the following conditions: 

  • You’re a property owner (excluding individuals) who makes more than NZ$500,000 total turnover* in a 12-month period. 
  • You’re a property owner (including companies and individuals) who lists (or can reasonably expect to list) more than 2,000 nights** of accommodation in a 12-month period on our platform. 

* “Total turnover” means the total turnover you make in New Zealand. For example, off-line or online over other platforms. 

** The 2,000 nights on our platform refers to listed nights even if not booked (not booked nights). The 2,000 nights are counted including the nights listed on all our Vrbo websites (excluding Expedia). 

How do I update my GST registration number? 

Follow the steps to update your New Zealand GST registration information. 

Why do I have to remove my property if I want to account for output GST on my property (as a property owner) or the properties managed by me (as a property manager)?  

Vrbo/Bookabach will add 15% GST on top of all rates from 1 Apr 2024. If you want to account for output GST, there is a risk that GST would be applied twice on your properties.  

How does adding GST to rates affect Vrbo/Bookabach commission computation? 

Our Pay-per-Booking (PPB) fee is based on the amount not including GST, so adding GST should not affect the PPB. 

The Payment Processing Fee (PPF) is calculated based on the transaction amount, which is the amount owed by the traveler to the host ("accommodation fees"), so it should be the GST-inclusive rate (excluding the Traveler Service Fee (TSF)). 

Important: If you use software to connect to Vrbo/Bookabach, GST needs to be added into your software as a tax and fed to Vrbo/Bookabach accordingly. Work with your software provider to ensure this is set up correctly. 

Can I hide my properties? 

Yes. To remove your property from our marketplace, see Hide your listing from search results. 

Where can I learn more about New Zealand’s GST rules?