8CSupplies of listed services

1. This section applies to determine the taxation of a supply of certain services (listed services) made through an electronic marketplace and performed, provided, or received in New Zealand.

2. The listed services referred to in subsection (1) are—

3. a supply of accommodation services in New Zealand, other than an exempt supply under section 14(1)(c):
4. a supply of transport services in New Zealand in the form of—
   1. ride-sharing or ride-hailing services:
   2. delivery services for beverages, food, or both.

5. A supply of listed services is treated as 2 separate supplies as described in section 60(1C) and for that purpose,—

6. when the underlying supplier is a registered person, the supply of the services to the electronic marketplace is zero-rated under section 11A(1)(jc) and—
   1. no taxable supply information is required in relation to the supply; and
   2. the operator of the electronic marketplace must account for tax on the supply that they are treated as making to the recipient; and
7. when the underlying supplier is not a registered person, the operator of the electronic marketplace must—
   1. account for output tax on the supply that they are treated as making to the recipient; and
   2. deduct an amount of input tax in relation to the supply under section 20(3)(de) and pass on to the underlying supplier an amount equal to the input tax as a flat-rate credit; and
8. when the underlying supplier is a registered person who has not notified the operator of the electronic marketplace their status as a registered person, and the operator has deducted an amount of input tax in relation to the supply under section 20(3)(de) for a taxable period, the underlying supplier—
   1. is required to account for output tax under section 20(3JD) for the flat-rate credit received by them; and
   2. has a tax shortfall equal to the amount of the flat-rate credit received by them.

9. For the amount of the input tax and the flat-rate credit, see section 20(3)(de) and (3N).

10. The amount of a flat-rate credit when passed on by an operator of an electronic marketplace to an underlying supplier does not constitute consideration for a supply of goods or services.

11. If the Commissioner notifies the operator of the electronic marketplace as to the registration status of an underlying supplier to enable the correct tax treatment for both the operator and the underlying supplier, the operator must act on the notification as soon as practicable.

12. The operator must provide the underlying supplier with a statement showing the flat-rate credit passed on to the underlying supplier. The statement may be provided periodically in a way consistent with the operator’s usual reporting practices, but must be provided at least once a month.

13. The services listed in subsection (2) include other services that—

14. are closely connected to the listed service supplied by the underlying supplier, other than a supply of services made directly by the operator to the recipient, ignoring for this purpose the effect of section 60C which treats the operator as a supplier of certain services that they themselves have not supplied; and
15. are advertised, listed, or otherwise made available through the electronic marketplace.

16. Subsection (7) does not apply to a supply of services connected to a listed service when the supply is made by a listing intermediary directly to a recipient, ignoring for this purpose the effect of section 60CB(3)(a), which treats a supply of other services by the listing intermediary to a recipient of listed services as instead being made to the operator of the marketplace.

17. In this section, ride-sharing or ride-hailing services means services provided through an electronic marketplace that involve the engagement of a personal driver to transport a person to their chosen destination.