In an effort to shift the indirect tax obligations from accommodation and transportation service providers to digital platforms, New Zealand has decided to impose Goods & Services Tax (GST) collection obligations on gig and sharing economies platforms starting April 1, 2024.
This new law makes the platform the deemed supplier for GST purposes. The decision was made after a public consultation was opened in March 2022. The law, known as the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023, has now received Royal assent as of March 31, 2023.
Therefore, from April 1, 2024, the intermediate digital platforms, such as Uber and Airbnb, will be responsible for collecting GST. This shift is expected to have a significant impact on the taxation of the gig and sharing economies in New Zealand. It remains to be seen how this new law will affect the digital platforms and the accommodation and transportation service providers in the long run.
Effective date: 1 April 2024