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FAQs for property owners: New Zealand GST rules
As of April 1, 2024, Vrbo/Bookabach needs to collect and remit the goods and services tax (GST) on rates to the Inland Revenue Department (IRD) as required by New Zealand’s GST rules for electronic marketplace operators.
FAQs
- How do New Zealand’s GST rules affect me?
- What do I need to do?
- What happens if I don’t agree to have Vrbo/Bookabach remit GST to the IRD?
- I am GST registered. What if I do not update my GST registration number with Vrbo/Bookabach?
- What do I do if I have multiple legal entities with different GST registration statuses?
- I am not GST registered. How should I read the pricing examples?
How do New Zealand’s GST rules affect me?
- If you are a non-GST registered property owner: Vrbo/Bookabach will be required to add 15% GST on top of your rates and fees. Out of this 15% GST collected from the traveler, Vrbo/Bookabach will pass 8.5% GST back to you (as a so-called “flat-rate credit”) and remit the remaining 6.5% GST to the IRD.
- Vrbo will only pay the "flat-rate credit" to you if you confirm that you are not GST registered. Update your GST registration information if necessary.
- Important: These GST changes may affect the total price the traveler pays. See our pricing examples for more information.
- If you are a GST-registered property owner: Instead of you, Vrbo/Bookabach will remit the 15% GST to the IRD.
What do I need to do?
- Update your GST registration information, whether you have a registration number or not. This is to ensure we pay you out correctly in the future (with or without the GST flat-rate credit).
- Upload GST-exclusive rates and fees for your properties.
Starting with bookings as of April 1, 2024, Vrbo/Bookabach will add 15% GST to the rates and fees that are loaded into our portal. To avoid Vrbo/Bookabach adding 15% GST to a rate that already includes GST, provide us with GST exclusive rates and fees. See our pricing examples for more information.
Vrbo/Bookabach will also take on other GST responsibilities such as reporting and paying GST to IRD. Refer to the IRD’s guidelines (PDF) or consult your accountant or tax advisor for your GST reporting changes.
What happens if I don’t agree to have Vrbo/Bookabach remit GST to the IRD?
If you do not agree that Vrbo/Bookabach remits GST to the IRD, we will not be able to offer your listing on Vrbo/Bookabach starting April 1, 2024 until we have updated our systems.
If you are GST registered and meet the opt-out eligibility criteria as set out by the IRD, you may instead consider listing your properties through Expedia Partner Central on our other Expedia Group sites.
I am GST registered. What if I do not update my GST registration number with Vrbo/Bookabach?
Since you are GST registered, Vrbo/Bookabach should not pay the 8.5% flat-rate credit to you. However, if you receive flat-rate credit paid by Vrbo/Bookabach, follow the IRD’s guidelines (PDF) to pass such flat-rate credit back to the IRD.
What do I do if I have multiple legal entities with different GST registration statuses?
Create separate Vrbo/Bookabach accounts for each legal entity you have. For example, you’ll have one account for your two GST-registered properties and a second account for your third property that is not GST registered.
I am not GST registered. How should I read the pricing examples?
You are free to set your rates:
- If you want to use 8.5% flat-rate credit to off-set part of the 15% GST charged to the traveler, you can set your rates after April 1 as 92.17% of your existing rates.
- If you want to fully absorb the added 15% GST, you can set your rates after April 1 as 86.96% of your existing rates.