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GST changes afoot for sharing businesses

May 17, 2022

Many businesses are using the internet to introduce buyers and sellers to each other – Air B&B, for example. 

There are many other much smaller enterprises doing the same thing, such as ride sharing.

Inland Revenue is looking at ways to help these businesses pay their tax, which is very thoughtful of it. The department is concerned many of these businesses might be operating below the threshold for the need to be involved in GST. It has been suggested collectively they are sufficiently significant to offer unfair competition to those who have to register. 

Thought is being given to lowering the GST threshold for these types of businesses.

One of the challenges for these businesses is determining tax-deductible costs. One proposal is to have a standard cost for those who earn their income in this way. This might be a better alternative to making adjustments for private use.

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