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New GST rules for New Zealand hosts.

There is some confusion as to how the new GST levy is to be collected. My accountant tells me Booking.com is supposed to collect it from guests making bookings. However the messages from Booking.Com appear to contradict that and say the the Host collects the GST, the Booking.Com takes it from the Host on a monthly basis, then refunds the Host 8.5%! This sounds like a very unwheeldy process, which will draw out payment schedules for Hosts. I'm picking the GST refund from Booking.Com will be paid a month later than the Rental payments les Commission. Seems totaly confusing and unnecessarily complicated. Come on Booking.com get your act together!


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Hyecroft Lodge 18 days ago

I agree, the amendments to the Goods & Service Act 1985 (new clause 130 c)

state that the operator of the electronic marketplace must "account for output tax on the supply that they are treated as making to the recipient"

Recipent in the Act means "the person receiving the supply"

In the first instance, this means the buyer (the person who places their booking through Booking.com. The assumption being that the very act of processing the booking implies that Booking.com is providing a "service" to "the buyer" from which they derive a payment via the seller (the accommodation provider). Hence the 15% "service" tax is directly applicable between the buyer & Booking.com (not IRD's unregistered "underlying supplier" the "seller" of the accommodation).

 

 

I have been requesting answers on all these questions and more from Booking.com since the 17th March - to no avail.

 

 

 

 

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Philew 18 days ago

This seems to be their standard practice as was the case during the pandemic, when a whole raft of questions and comments went unanswered. They make these policies and decisions to suit their own convenience rather than applying the actual wording of the article (in this case the Goods & Service Act 1985 clause 130c). I consulted my Accountant, and this was his interpretation of the clause too. I'm pretty sure that a NZ accountant familiar with every update of Tax law would be correct, backing up our interpretation, not Booking.com's

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Hyecroft Lodge 13 days ago

Have finally received a reply from an anonymous member of the "Partner Support Team" They state:

 

"Moving forward booking.com will be doing the following....regardless" (2 April 2024)

 

The response then goes on to repeat booking.com's same general statement without answering any of the actual points I had raised.

 

I had also explained that their extranet system had only introduced space for one tax file number - but tax is often returned across more than one individual taxpayer- i.e. when the accommodation     is owned by two or more persons. Reporting it all against one person's tax file number is just going to skew our own IRD returns. However, they state "we can only take 1 IRD number".....

 

But there you are - Booking.com will do what ever with no "regard" as they have stated.

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Philew 13 days ago

Hyecroft Lodge,

I have the same impression that they will proceed regardless of the actual ruling provided by IRD which in fact states that BOooking.com is responsible for gathering and paying the GST from the Booker, not the Host, and are to pay the 8.5% to the Host and 6.5% to IRD.

I have also found that I can only enter one Tax Number where as we are both owner/managers and should be able to enter both our numbers so that the payment is shared equally.

I agree with your summary 100%