Tax Updates: 26 June 2023

Welcome to this week’s review of tax issues where Richard comments on what’s been happening in the world of tax over the past week. If you have a question or would like a second opinion on any national or international tax issues, please contact Richard via email at

Special report on new GST “listed services” issued

Inland Revenue (IR) has now published a report which provides early information explaining the GST rules for marketplace operators that are involved in the supply of ride-sharing and ride-hailing, delivery services for food and beverages, and accommodation services.

The recent passing of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 on 31st March 2023, enacted changes that would see GST applying to “listed services” supplied through electronic marketplaces, effective from 1st April 2024.

“Listed services” are defined to be those services performed, provided, or received in NZ, which include:

  • ride-sharing and ride-hailing;
  • delivery services for beverages, food, or both; and,
  • taxable accommodation.

From 1st April 2024, the supply of “listed services” made through an electronic marketplace will be subject to GST whether the person providing the services through the electronic marketplace is registered for GST or not. Marketplace operators will only be required to collect and return GST on supplies of listed services if their total supplies in NZ, including the listed services, exceed, or are expected to exceed, the GST registration threshold of NZ$60,000 in a 12-month period.

Also introduced is a flat-rate credit scheme that requires marketplace operators to pass on a proportion of the GST collected on supplies of listed services to underlying suppliers that are not registered for GST. The flat-rate credit scheme provides a “credit” to underlying suppliers who are not required to be registered for GST because their total supplies are below the GST registration threshold. This is intended to recognise the GST incurred by unregistered underlying suppliers on goods and services used to make supplies of listed services.

It should be noted that a service provider, for example, an Uber driver, will still be able to register for GST, enabling the service provider to still claim the input tax on the expenses they incur. However, they will no longer account for output tax on their supplies of listed services, as the marketplace operator will take care of this.

The special report is a 43-page document and includes commentary on each of the three present categories of listed services (including what may be considered to be “closely connected services”, which will also be subject to GST), when marketplace operators will be deemed to supply the listed services and how they will account for the GST charged, how the flat rate credit scheme will operate and the obligations of GST registered service providers who receive the credit by mistake, and the potential flow-on effects of the new regime from an income tax perspective.

Happy reading!

This article was originally published through the ‘A Week In Review’ newsletter. If you would like to receive Richard’s tax updates every Monday morning, you can subscribe here.

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