If you operate a short-term accommodation business in New Zealand, you need to be aware of the recent Application Platform Provider (APP) Tax. This tax affects operators who list their properties on platforms like Airbnb, Booking.com, and Expedia. Managing these tax obligations efficiently is essential to staying compliant and maximising your earnings.
What is APP Tax?
The APP Tax is a tax withholding system introduced by the New Zealand government to ensure that GST (Goods and Services Tax) is collected on short-term accommodation bookings. Starting from April 1, 2024, digital platforms facilitating short-term rentals must collect and remit GST on behalf of property operators.
This tax aims to level the playing field between traditional accommodation providers, such as hotels, and individuals renting out their properties through digital platforms. The government estimates that this change will generate additional revenue while reducing tax avoidance within the sector.
How APP Tax Affects Accommodation Operators
As an accommodation provider, APP Tax means that a portion of your booking revenue will automatically be withheld by the platform and paid directly to Inland Revenue (IRD). Key points to note include:
- GST-registered owners (earning over $60,000/year) can claim back GST on expenses.
- Non-GST-registered owners will receive a flat 8.5% credit from their gross accommodation revenue
Platforms like Airbnb and Booking.com now act as intermediaries, removing the need for you to manage those payments manually.
How Resly Helps You Stay Compliant (and Sane)
At Resly, we’re not just another software provider, New Zealand is our core market, with a local team that understands the local GST rules inside and out.
We have made significant developments to support Kiwi operators through this change, including:
- Automated APP Tax calculation — no more guesswork or manual entries.
- Accurate tracking of withheld GST and flat rate credits.
- Integrated accounting and Xero sync, so your books are clean and your reports are IRD-ready.
- Owner statements that reflect APP Tax — saving hours at EOM.
The introduction of APP Tax brings changes to how short-term accommodation operators manage their finances. However, with Resly’s automation tools, you can stay compliant while focusing on growing your business. Whether you're a GST-registered operator or just getting started in short-term rentals, having the right tools in place will ensure you're ready for the new tax landscape.
Want to learn how Resly could simplify your tax and accounting setup?
Let’s have a chat. We're local, we're ready, and we’re here to help.
Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal, tax, or financial advice. We recommend consulting with a qualified tax professional or advisor for guidance specific to your individual circumstances.
