Short-stay accommodation is when you are renting out your residential property to guests for up to 4 consecutive weeks at a time, e.g., Airbnb, Bookabach and Holiday Homes.
Short-stay accommodation includes:
-a room in your house
-your whole house
-another residential property that is not your main house such as an investment property.
-a cottage, caravan or sleep-out at your property
-a holiday home
Note- it does not include accommodation for residential tenants, boarders, care home residents, student or emergency accommodation.
Income tax obligations
You need to keep records of all income earned and declare it in your income tax return subject to some limited income exemptions. You also need to keep records of your deductible expenses.
GST obligations
Your online marketplace will collect and pay GST on all short-stays rented through their website.
For GST you need to-
-tell the online marketplace you’re using you’re name, IRD number and GST registration status and if it changes.
-register for GST if you have earned or will earn more that $60,000 from all taxable activities in any 12-month period.
-keep records of your income and expenses.
For more information check out the IRD website.