IRD: Marketplace and the sharing economy

Marketplace is an online platform where multiple vendors can sell their goods or services to a wide audience.  Think of platforms like Amazon, Trademe or Facebook, where diverse sellers converge in a virtual space to offer their products to consumers without the need for a middleman.

The sharing economy refers to peer-to-peer-based activities of acquiring, providing, or sharing access to goods and services, facilitated via community-based platforms.  Examples include Uber for transportation and Airbnb for accommodation.

GST rules apply to online marketplaces for sellers that receive income from listed services.  If you expect to generate income more than $60,000.00 NZD in a 12-month period, you must register for GST.  If you’re an accommodation owner and not GST registered the flat-rate scheme applies. 

Check out IRD's website for rules around listed services: Marketplace and the sharing economy.

Both the marketplace model and the sharing economy provide unique, effective avenues for SMBs looking to expand their reach and optimize resources.  By embracing these models, businesses can not only increase their market share but also build a sustainable foundation for future growth.  If your business is considering venturing into these realms, consult with an accountant to ensure you take full advantage of financial opportunities while mitigating risks.