Short-stay accommodation
“Short-stay accommodation” (also known as “short-term accommodation) is accommodation provided to a guest for up to four consecutive weeks, in a home that is not the guest’s ordinary residence. This accommodation is often provided through peer-to-peer platforms such as Airbnb or Bookabach.
“Short-stay accommodation” does not include:
- Accommodation provided to residential tenants, boarders, or care home residents
- Student accommodation
- Emergency accommodation
The Commissioner has published several items on short-stay accommodation. This overview sets out these items and provides guidance on tax obligations if you provide short-stay accommodation to guests.
- Income tax and short-stay accommodation
- Income tax - trusts and short-stay accommodation
- GST and short-stay accommodation
The Commissioner issues different types of guidance items to cater for different customer needs. The different types of items are explained here.
Income tax and short-stay accommodation
Renting out all or part of your own home
| Title | Summary | Date issued |
|---|---|---|
|
Standard-cost household service for short-stay accommodation providers DET 19/02 |
This Determination may be relevant to taxpayers who provide short-stay accommodation services in their home, if they do not rent out rooms for more than 100 nights in the year. | 21 May 2019 |
|
2023 CPI adjustment to DET 19/02: Short-stay accommodation DET 19/02 (CPI 2023) |
This update to DET 19/02 shows the annual adjustment to the standard-cost household service for short-stay accommodation. | 11 May 2023 |
|
QB 19/05 |
If you can’t use the standard-cost approach in DET 19/02, or you don’t want to, your deductions will be based on your actual costs related to earning the income. This QWBA will help you understand how to calculate the percentage of your mixed expenses that’s tax deductible. | 20 May 2019 |
Renting out a separate property
| Title | Summary | Date issued |
|---|---|---|
|
QB 19/06 |
This QWBA will help you work out which income tax rules apply to a dwelling you sometimes rent out as short-stay accommodation and sometimes use yourself. You may have to use the mixed-use asset rules as explained in QB 19/07 or the standard rules explained in QB 19/08. |
20 May 2019 |
|
QB 19/07 |
This QWBA explains how the income tax rules apply to a dwelling you sometimes rent out as short-stay accommodation and sometimes use privately, where the dwelling is subject to the mixed-use asset rules. Before you use this QWBA, you need to work out if the mixed-use asset rules apply to the dwelling (refer to QB 19/06). | 20 May 2019 |
|
QB 19/08 |
This QWBA is relevant if you’ve determined that for a particular income year the dwelling is subject to the standard rules, not the mixed-use asset rules (refer to QB 19/06). | 20 May 2019 |
The interest limitation rules
| Title | Summary | Date issued |
|---|---|---|
|
The interest limitation rules and short-stay accommodation IS 23/04 |
This IS considers how the interest limitation rules apply to interest incurred for property used to provide short-stay accommodation. It also explains what other income tax rules may be relevant to any interest that is deductible, depending on your circumstances. This IS explains how the rules apply to natural persons and trustees only. | 2 Jun 2023 |
Other resources
| Title | Summary | Date issued |
|---|---|---|
| Short-stay standard-cost for renting out your home or its rooms | The main Inland Revenue website contains further information about short-stay standard costs and rental income from renting out a home or its rooms. | |
| Actual cost method for working out rental income and expenses | The main Inland Revenue website contains further information about the actual cost method and how to apply this. | |
|
Home based Boarders or Home-stay students IR1255 |
Use this Worksheet for calculating standard-costs for private boarding services. | June 2023 |
|
IR1021 |
This Factsheet explains the tax rules that apply to "mixed-use" assets. | Mar 2023 |
Income tax - Trusts and short-stay accommodation
| Title | Summary | Date issued |
|---|---|---|
|
QB 19/15 |
This QWBA explains how the income tax rules apply if property held in a trust is rented out by a beneficiary of the trust. | 19 Dec 2019 |
|
QB 19/16 |
This QWBA explains how the income tax rules apply if property held in a trust is rented out by the trustees. | 19 Dec 2019 |
|
The interest limitation rules and short-stay accommodation IS 23/04 |
This IS considers how the interest limitation rules apply to interest incurred for property used to provide short-stay accommodation. It also explains what other income tax rules may be relevant to any interest that is deductible, depending on your circumstances. This IS explains how the rules apply to natural persons and trustees only. | 2 Jun 2023 |
GST and short-stay accommodation
| Title | Summary | Date issued |
|---|---|---|
|
Can I register for GST if I supply short-stay accommodation to guests in my home or holiday home? QB 19/09 |
This QWBA explains whether hosts who provide short-stay accommodation in their house or property can register for GST. | 20 May 2019 |
|
Goods and services tax: GST treatment of short-stay accommodation IS 20/04 |
This IS explains the GST treatment of supplying short-stay accommodation and confirms these supplies are not exempt supplies. The IS 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. | 4 Jun 2020 |
Other resources
| Title | Summary | Date issued |
|---|---|---|
| The main Inland Revenue website contains further information on how GST applies to short-term rentals. |