Airbnb, Uber fight back over GST

Airbnb says a Government proposal to force it to levy GST on accommodation bookings made through its service would stifle the country’s economic recovery and cost the economy up to $500 million a year.

The Government announced in August that ride-sharing services such as Uber and online accommodation providers such as Airbnb would need to levy GST on fares and bookings from April 2024 under a proposed law change.

But both companies said in submissions just released by Parliament’s Finance and Expenditure select committee that the rule change would be unfair.

The committee will begin hearing oral submissions on the proposed tax changes today.

Airbnb said in its written submission that requiring it to levy GST on bookings would amount to an unfair new tax on tourism that would ‘‘stifle Aotearoa’s economic recovery at a time when tourism operators across the sector are suffering and borders have only just reopened’’.

‘‘If the proposal to impose GST on all platform accommodation bookings is implemented, modelling based on the Oxford Economics Report predicts up to a $0.5 billion decrease to New Zealand’s GDP which would have otherwise been generated from tourists staying in Airbnb listings,’’ it said.