Articles by Anna Loginova.
You might remember the articles we shared in November 2023 and October 2024, discussing the GST changes for all Airbnb properties effective from 1 April 2024.
As we’ve been working through clients’ 2025 financial statements, we’ve come across a few unexpected issues that are worth highlighting.
When clients start offering their properties for short-term stays and inform platforms like Airbnb whether or not they (or their entities) are GST-registered, the assumption is that this will be accurately recorded in Airbnb’s system. Unfortunately, that’s not always the case, which can have real financial consequences.
Here are two important scenarios we've seen recently:
This is a surprisingly easy mistake to make. Perhaps you ticked the wrong box, or maybe Airbnb’s system defaulted to the wrong status.
What does this mean?
Airbnb treats the host as GST registered and doesn't pass on the usual 8.5% flat-rate credit. Instead, they deduct the full 15% GST from your gross income and send it straight to IRD. This means you’re missing out on that 8.5% credit and could experience unnecessary pressure on your cashflow.
What should you do?
If you’re not GST registered and you are not getting the 8.5% flat rate credit, it’s important to contact Airbnb as soon as possible. Ask them to update your GST status and request that they correct the overpaid GST amounts. We’re happy to help you with this process if needed.
This is another common scenario we’ve seen. In this case, Airbnb believes you are not GST registered and pays you the 8.5% flat-rate credit while only paying 7.5% GST to the IRD. As you are actually registered, Airbnb should be paying the full 15% to IRD.
What’s the risk?
This creates a GST shortfall equal to the credit you weren’t entitled to, and IRD may charge interest or penalties on the unpaid amount. It's a situation that could become expensive if left unresolved.
How to fix it
We recommend reaching out to Airbnb immediately to confirm your correct GST registration. They’ll need to update your account. You’ll also need to make a debit adjustment in your GST returns to repay the flat-rate credit you weren’t entitled to.
There are a few other points that you should be aware of. For example, we’ve seen these errors that Airbnb have made:
• The percentage flat rate credit is not 8.5% (it could be higher or lower)
• The flat rate is credited in one month but not the next
Keep an eye out, and if you notice any variances like this, contact Airbnb directly to rectify.
GRA can help
These GST issues can be stressful and confusing, but you’re not alone. If any of this is ringing alarm bells, or if you're just not sure whether your GST status is recorded correctly, get in touch with us at GRA (phone +64 9 522 7955 or fill out our online form). We’re here to support you, get things sorted, and make sure you’re not paying more tax than necessary (or risking IRD penalties).
Anna is fantastic. We often have lots of quick questions which are swiftly answered by Anna via a return phone call or by email. Her team is also very responsive.
- NC, November 2023
Gilligan Rowe and Associates is a chartered accounting firm specialising in property, asset planning, legal structures, taxation and compliance.
We help new, small and medium property investors become long-term successful investors through our education programmes and property portfolio planning advice. With our deep knowledge and experience, we have assisted hundreds of clients build wealth through property investment.
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