What is GST (Goods and Services Tax)?
GST is a consumption tax that is applied to the sale of goods and services in many countries, including New Zealand and Australia. For short-term rentals, this means that when you list your property on platforms like Airbnb and Booking.com, you may be required to charge GST on the booking price.
Does GST apply to Airbnb and Booking.com payouts?
Yes, GST can apply to both the guest booking price and the platform’s fees. However, the way GST is applied can vary depending on the country where you are registered for tax purposes.
Airbnb: If you are registered for GST in New Zealand (for example), Airbnb will typically collect GST on the rental income received from guests and pay it to you as part of your payout.
Booking.com: Similar to Airbnb, Booking.com will include GST on the guest payment and send you the payout, including any taxes applicable based on your location and tax registration.
How is GST calculated on Airbnb and Booking.com payouts?
Airbnb: Airbnb calculates GST on the rental income and service fee. This amount is then deducted from the total payout before it’s transferred to you. If you’re registered for GST, you should ensure you provide the correct tax details in your Airbnb account settings.
Booking.com: Booking.com calculates and deducts GST on the rental income, similar to Airbnb. Your payout will include both the rental amount (before tax) and the applicable GST based on your location.
Do I need to worry about tax calculations?
As your management company, we do not handle GST, taxes, or any financial reporting for your property. We focus on managing your bookings, guest communications, and listing optimization. You are responsible for managing your tax affairs and ensuring you comply with GST requirements.
How do I handle GST for my rentals?
If you’re registered for GST:
You will likely need to charge GST on the rent you collect from guests, depending on local tax laws. You can then claim this back when submitting your GST return.
If you are not registered for GST, the platforms will still handle the applicable GST on your behalf, but you won’t be able to claim any GST credits.
It’s important to consult with a tax professional or accountant to ensure you are following the correct procedures based on your location and tax registration status.
Will I receive the full payout amount after GST deductions?
The platform (Airbnb, Booking.com) will deduct the applicable service fees and GST from the total payout before transferring funds to you. The payout you receive will be the net amount after fees and taxes have been deducted.
Do I need to do anything to set up GST on my Airbnb and Booking.com accounts?
For Airbnb: Ensure that you have provided your tax details in your Airbnb account settings. You may need to add your GST number if you’re registered.
For Booking.com: You can input your tax details within your Booking.com account. Make sure you have set up your account to reflect your tax status (whether you are registered for GST or not).
What happens if I’m not registered for GST?
If you’re not registered for GST, the platforms will still charge GST on your guest bookings. However, you won’t be able to claim back the GST paid. You will still receive the net payout after the deductions, which includes the GST amount.
Do I need to keep track of GST for my business?
Yes. If you’re registered for GST, you’ll need to track your income and the GST charged. We recommend working with an accountant or tax professional to ensure you’re correctly reporting your earnings and GST on your tax returns.
Will you help with my GST returns?
Unfortunately, we do not manage tax matters, including GST returns, for our clients. We advise you to consult with a tax professional to handle your GST obligations. They will be able to guide you on how to claim back GST on expenses and manage your business tax requirements.
How can I ensure compliance with tax laws for short-term rentals?
Keep accurate records of all your bookings and payouts. Ensure your tax details are up to date in your Airbnb and Booking.com accounts. Consult with a tax professional to ensure you’re complying with the tax laws of your country and are registered for GST if necessary.
