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New Zealand hits gig & sharing economies platforms with 15% GST April 2024

Imposition on digital platforms Goods & Services Tax 1 April 2024 on ride and accommodation sharing

New Zealand has imposed on gig & sharing economies platforms GST collections obligations from 1 April 2024. This shifts the indirect tax requirements from the accommodation and transportation service providers to the intermediate digital platforms (e.g. Uber and Airbnb) – making the platform the deemed supplier for GST purposes.

However, there is an opt-out option for taxpayers of the electronic marketplace rules if they make taxable supplies of $500,000 or more in a 12-month period and have 2,000 nights of accommodation listed as available on one electronic marketplace for a 12-month period.

New Zealand opened a public consultation on this topic in March 2022. The law, Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 received Royal ascent on 31 March 2023.

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Accommodation and Transport services subject to GST

The New Zealand law covers:

  • Ride-sharing
  • Food and drink delivery
  • Home sharing

The law also includes a flat-rate credit scheme intended to reduce compliance costs for accommodation hosts and drivers (underlying suppliers) who are not required to be registered for GST.

Aside from the introduction of GST on the services, the New Zealand Taxation Bill includes provisions to introduce the OECD digital platform reporting and exchange framework from January 2024.

Global VAT / GST reviews of gig and sharing economies

Australia implemented its gig & sharing marketplace reporting program in July 2022. This follows similar requirements in Europe, including the EU’s DAC 7 marketplace legislation for 2023. The EU is also reviewing VAT treatment for the platform economy, which includes the gig and sharing economies from 2025, as part of its wider VAT in the Digital Age reforms.


The OECD has performed extensive work on VAT issues for the gig and sharing economies. The EU’s focus should be broader, although the OECD has now extended to goods and ride sharing.


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