GST on Short-Term Rental Accommodation

Question

I have a client who has a property in Queenstown, which is rented out during the year on a short-term basis, via Airbnb. Is there any requirement for them to be GST registered? I assume it's considered residential property, so no need for GST registration. Am I correct?

Answer

1. If the income from the AirBnB rental exceeds the $60,000 for GST registration then your client needs to be registered for GST.

2. AirBnB is classified as short term rental, the same as a motel, therefore is considered a taxable activity for GST purposes.