Thanks Kathy! We've read IS 20/04, and still feel uneasy about the issue. Some of the interpretations seem a bit self-contradictory and, as it's a new law, with a new view on gst, we think we'll wait til there are some cases tested in court, with resulting refinements, before we feel we can trust either IRD or AirBnB. The house we use and live in is owned by trusts, and there's alot at stake. We don't want to set up an additional entity at this stage, so we'll just forego the income. I've blocked bookings from 1 April, and will likely cancel AirBnB hosting from 31 March.
We'll check in with our accountant, and MP, but I suspect the law will require a period of bedding in and until that happens I believe no one can be confident about outcomes.
I do feel a bit abandoned by AirBnB, though I guess it's too complex and risky for them to deal with, too. Our neighbours have withdrawn from AirBnB already and I'm sure many others will do so as well. Perhaps AirBnB are hoping to avoid a mass exit, but I do hope that does not mean many NZ hosts get caught out.
It's a pity that withdrawals will probably hit the tourism and hospitality areas, not to mention our retirement income and enjoyment of hosting.
Regards
Brad