← Guides / New Zealand

Sharing Economy Guide — Tax Rules for Platform Income in NZ

the sharing economy tax rules in New Zealand. The guide covers the ride-sharing (Uber, Ola), the short-stay accommodation (AirBnb, Bookabach), the task-based platforms (Airtasker, TaskRabbit), the allowable expense deductions, and the GST registration threshold.

Ride-Sharing and Accommodation Income

The income from the ride-sharing platforms (Uber, Ola) and the short-stay accommodation (AirBnb, Bookabach) is taxable income. The ride-sharing drivers may deduct the vehicle expenses (the IRD kilometre rates or the actual costs), the platform fees, the tolls, and the parking. The short-stay hosts may deduct the cleaning fees, the platform service fees, the utilities apportionment, and the property manager fees. The mixed-use asset rules apply to the accommodation properties used partly for the private purposes and partly for the income-earning. The IRD requires the platform operators to report the seller income from the 1 April 2024 under the OECD digital platform reporting rules. See our Digital Platform Tax Guide → for the comprehensive rules.

GST and Provisional Tax

The sharing economy workers must register for the GST if the annual platform income exceeds the $60,000 threshold. The GST on the ride-sharing fares and the accommodation charges is charged at the 15% rate. The GST-registered workers may claim the input tax on the vehicle expenses, the platform fees, and the property costs. The provisional tax applies if the residual income tax exceeds $5,000. The GST ratio method is available for the provisional tax calculation. The myIR online portal is used for the GST returns and the tax payments. See our GST Guide → for the GST registration rules.