Goods and services tax: GST treatment of short-stay accommodation

This interpretation statement is the final item in a series of guidance on the income tax and GST consequences of providing short-stay accommodation through peer-to-peer websites such as Airbnb, Bookabach and Holiday Houses.  The statement explains the GST treatment of supplying short-stay accommodation and confirms these supplies are not exempt supplies.  The statement also discusses the requirements for registration, the main consequences of registration, change of use adjustments and what happens when the property is sold or the short-stay accommodation activity ceases.  These latter topics will be useful in providing guidance to taxpayers of the options available where their short-stay accommodation activity has been affected by Covid-19. 

Note: This interpretation statement is under review for amendments made to the GST Act 1985 in 2022 and 2023.   Care is needed when reading it.  Information on the amendments can be found in:

• Tax Information Bulletin Vol 34, No 5 (June 2022) at 160 and 161.
• Tax Information Bulletin Vol 35, No 6 (July 2023) on “Marketplace rules for listed services” from 16, “GST apportionment and adjustment rules” from 62, “GST secondhand goods input tax deduction” at 154 and 155, and “Input tax deductions” at 295-297.

Tax Information Bulletin Vol 32 No 6 - July 2020