Date posted: 12/02/2019 2 min read

New Zealand Rules and Guidance

View our latest submissions and consultations open for comments

In Brief

  • Items open for consultation
  • Recent items: watch this space
  • Recent items: watch this space - GST

Open for Consultation

AirBnB’s in Inland Revenue’s sights 

Sadly, the summer holidays are over for most of us. You may have put your home in the city on Bookabach or Airbnb while you headed to the beach, maybe you decided to stay home and let the bach to some New Year revellers, or maybe you had a spare bedroom to welcome guests and show them the NZ summer. Either way, Kiwis are mixing the way they treat their property and a compliance catch-up is now upon us.   

Last year, Inland Revenue (IR) asked for feedback about short-term rental accommodation, and given the increased interest in capturing these activities by insurance companies, councils and homeowners, we expect to see guidance released in the not too distant future.  

IR has released a range of draft documents for consultation, including ‘Questions We’ve Been Asked’ and draft determinations covering seven topics:

  • consultation on accommodation items
  • set costs for boarders in your home
  • set costs for short-stay accommodation in your home
  • standard rules for short-stay accommodation in your home
  • income tax rules that apply to accommodation in a holiday home
  • applying the mixed-use asset rules to a holiday home
  • applying the standard rules to a holiday home
  • short-stay accommodation – GST registration.

Consultation on these items closes on 22 March 2019 and you can contact the tax team with any feedback. Expect to see further items over the next few months covering GST issues in more detail and issues arising when property is held in a trust.

'AirBnBs' – Renting out your home, a room within your home, or a separate residential property as short-stay accommodation

Copies of the draft documents PUB00303/a to PUB00303/g can be found on Inland Revenue’s consultation page. Consultation closes 22 March 2019

Find out more

Submissions lodged

Provisional Tax

CA ANZ recently consulted on two Draft QWBA’s; PUB00336: Provisional tax - impact on employees who receive one-off income without tax deducted and PUB00336: Income tax - provisional tax and use of money interest implications for a person in their first year of business. These items covered the provisional tax and use of money implications when an employee receives a one-off amount of income that has not been tax deducted at source and, implication of a person in the first year of business when they start a taxable activity.

Submission - QWBA Provisional tax impact on employees PUB 00336

The submissions were lodged on February 8, 2019

Download here

Submission - QWBA Provisional tax and UOMI PUB 00336

The submissions were lodged on February 8, 2019

Download here

GST – Administration or Administration services provided by a collective body to its members

QWBA 18/XX: GST – administration or management services provided by a collective body to its members intends to provided guidance on when a “collective body” that provides administration or management services will be required to register and charge GST.

Submission coming soon.

GST – zero-rating of services connected to land

This statement will be a crucial aid for taxpayers to interpret the change in GST rules which created a wider range of services that are connected to land and will be a significant change for many taxpayers and GST practitioners.   These rules changed as part of the Taxation (Annual Rates 2016-17, Closely Held Companies, and Remedial Matters) Act 2017 and the interpretation statement and services now may not be zero-rated where they are supplied to a non-resident outside of New Zealand if the services are “supplied in connection with… land or [an] improvement and are intended to enable or assist a change in the physical condition, or ownership or other legal status, of the land or improvement”.

CA ANZ Submissions on GST

GST - Administration or management services provided by a collective body to its members lodged on 15 February 2019

Download here