Full speed ahead: Platform economy changes continue with new OECD reporting requirements

By Viola Trnski, Amy Sexton & Robyn Walker

While the introduction of GST on the platform economy on 1 April 2024 garnered a lot of media attention (often dubbed the “app tax”), the reporting rules intending to monitor activity undertaken via platforms has largely flown under the radar. On 7 February 2025 the first tranche of data collected by the reporting requirements was due from online marketplaces (also called digital platforms). In case you missed it, let’s recap the reporting requirements.

Why the new rules?

Income earned from salary, wages and investments are monitored through regular reporting requirements on employers and those who make payments of investment income. The new platform reporting rules will make income earned by sellers on online marketplaces more visible to Inland Revenue. The information collected will provide oversight to Inland Revenue and allow them ensure tax obligations are being complied with.

The implementation of these reporting requirements is also intended to reduce compliance costs of these New Zealand resident online marketplaces that may otherwise face reporting obligations in multiple overseas jurisdictions, all with different reporting rules. New Zealand has adopted the OECD’s Model Rules for Reporting by Platform Operators with respect to Sellers in the Sharing and Gig Economy (MRDP). This will allow the Inland Revenue to exchange reporting information with overseas jurisdictions under the existing Automatic Exchange of Information (AEOI) agreement.

Who do the rules apply to?

The rules apply to online marketplaces that are tax resident in New Zealand. Also captured under the rules are any non-tax resident online marketplaces that are incorporated under New Zealand law or have their place of management in New Zealand.

These online marketplaces must collect information on sellers that receive consideration from relevant services provided through their platform, those relevant services being:

• The rental of immovable property (both commercial and residential) including carparks, short-stay, and visitor accommodation, and
• Personal services, including ridesharing, food delivery, and graphic and web design services.

A personal service is defined as time- or task-based work performed by one or more individuals at the request of a buyer.

When do these rules apply from?

There are two key dates:

1 January 2024 is the date information for the first reporting period needs to be collected from. Reporting periods run in calendar year cycles, meaning that the first reporting period should capture transactions that took place between 1 January 2024 and 31 December 2024.

7 February 2025 was the due date for the first reporting period. These reports will contain the information collected in 2024. Future calendar year reports will be due on or before 7 February of the follow year.

As the first reporting due date has just passed online marketplaces should already have effective processes and systems in place to collect the required information. Anyone who has not complied should speak to a tax advisor or contact Inland Revenue to correct the error.

What information needs to be collected?

The reporting requirements place a number of obligations on online marketplaces. As well as collecting the information in the table about sellers, online marketplaces are required to verify the information to ensure it is accurate as well as provide the information collected to sellers themselves.

Online marketplaces must register for a Digital Platform Information account with Inland Revenue and provide the required information in quarterly periods in XML or Excel (for up to 1,000 sellers) format.

Online marketplaces that facilitate the sale of goods and vehicle rentals

While not currently captured by the existing reporting requirements, the OECD has also developed an optional extended standard that imposes reporting obligations on online marketplaces that sell goods and facilitate vehicle rentals.

This extension has not yet been implemented in New Zealand but could be in the future.

Are you an online marketplace operator?

If you are, the reporting rules are becoming increasingly complex, and the penalties for non-compliance can be significant – Inland Revenue may enforce fines of up to $100,000 for non-compliance.

As this is a new reporting requirement and non-compliance can result in large penalties, online marketplaces should seek advice from their tax advisors. If you would like to discuss the tax and reporting requirements for online marketplaces, contact your usual Deloitte advisor.