Published: 17 August 2026
Updated: 17 August 2026
GST on Online Marketplaces in New Zealand: What the YUMMi-IRD Dispute Means for Businesses
A reported dispute between Nelson delivery business YUMMi and Inland Revenue has put GST on online marketplaces NZ back in the spotlight.
According to the report supplied for this article, YUMMi founder George Evans has been challenging the way his delivery business is classified for GST purposes, arguing that it is treated differently from other delivery platforms.
The report also says Evans obtained internal Inland Revenue messages after requesting information held about him and his business. Inland Revenue subsequently acknowledged that some comments did not meet the standard expected of its employees.
But what does this mean for other New Zealand businesses? The bigger issue is understanding when GST rules for online marketplaces apply, who is treated as the supplier and who is responsible for accounting for GST.
Source note: The YUMMi-specific facts in this article are based on the 17 August 2026 news report supplied for this article. The GST explanations are based on Inland Revenue’s published guidance and tax technical material.
Read the original report about the YUMMi and Inland Revenue dispute.
GST on Online Marketplaces NZ
Short answer: New Zealand has special GST rules for certain services supplied through qualifying online marketplaces. The rules are particularly relevant to businesses involved in food delivery, ride-sharing and short-stay accommodation.
- Qualifying online marketplaces generally collect GST at the standard 15% rate.
- Eligible non-GST-registered sellers can generally receive an 8.5% flat-rate credit.
- The remaining 6.5% of the GST collected is generally paid to Inland Revenue.
- GST-registered sellers generally treat qualifying listed-service supplies through a GST-registered marketplace as zero-rated.
- Not every website or app is an online marketplace for GST purposes.
- A business supplying its own delivery service directly to customers may be outside the special marketplace rules even if it uses an app or website.
- The actual contracts, payment arrangements, customer relationships and platform structure matter.
The key takeaway for business owners is that you should not copy another company’s GST treatment without checking whether your own business structure meets the requirements of the marketplace rules.
What Happened in the YUMMi-IRD GST Dispute?
Nelson-based delivery business YUMMi has been involved in a reported long-running dispute with Inland Revenue concerning the GST classification of its business.
According to the 17 August 2026 report supplied for this article, founder George Evans believes his business has been treated differently from competing delivery platforms.
The reported issue centres on whether YUMMi should be treated under the online marketplace GST framework or as a business that directly supplies the delivery service.
This distinction matters because New Zealand introduced specific GST rules for listed services supplied through online marketplaces.
The report also says Evans requested information held by Inland Revenue about his business, including internal communications. Some of the material reportedly contained derogatory comments about him.
Inland Revenue subsequently said that the comments did not reflect the standard of conduct expected of its staff and that appropriate steps had been taken.
It is important, however, not to confuse the conduct issue with the underlying GST question. The reported dispute does not by itself establish that Inland Revenue has incorrectly applied the tax law.
Quick Answer: What Does the YUMMi Dispute Mean for GST?
The YUMMi dispute highlights why the distinction between an online marketplace and a business that directly supplies a service can be important for GST.
New Zealand’s marketplace GST rules apply to specific listed services supplied through qualifying online marketplaces. These include ride-sharing and ride-hailing, food and beverage delivery, and short-stay and visitor accommodation.
A qualifying marketplace generally accounts for GST on the customer-facing supply. However, a business that supplies its own services directly to customers may not fall within the marketplace rules simply because customers place orders through an app or website.
The key question is how the transaction actually works, not simply what the business looks like from the customer’s perspective.
What Is an Online Marketplace for GST Purposes?
For GST purposes, an online marketplace is more than simply a website or mobile app.
Inland Revenue describes an online marketplace as an electronic platform through which sellers can supply goods or services to customers.
A marketplace is generally treated as the supplier of listed services when it:
- Authorises a charge for the listed service to the customer
- Authorises delivery of the listed service to the customer
- Sets terms or conditions under which the listed service is supplied
These rules apply whether the marketplace is resident or non-resident for New Zealand GST purposes.
See Inland Revenue’s guidance on GST obligations for online marketplaces.
What Does “Through an Online Marketplace” Mean?
One of the most important points in understanding GST on online marketplaces NZ is that the listed-service supply must actually be made through an electronic marketplace.
Inland Revenue’s 2025 technical guidance explains that this requires the marketplace to be involved in facilitating the supply between the underlying supplier and the customer.
This means that not every website, app or digital platform in the wider platform economy will necessarily meet the definition.
Read Inland Revenue’s QB 25/19 technical guidance on electronic marketplaces.
Which Services Are Covered by the Marketplace GST Rules?
The special marketplace GST rules apply to specific listed services.
1. Ride-Sharing and Ride-Hailing
Certain ride-sharing and ride-hailing services supplied through qualifying online marketplaces are covered by the rules.
2. Food and Beverage Delivery
Food and beverage delivery is a listed service. The rules concern the delivery service and should not automatically be confused with the separate supply of food itself.
3. Short-Stay and Visitor Accommodation
Certain short-stay and visitor accommodation supplied through online marketplaces is also covered.
How the 15% GST Rule Works
Since 1 April 2024, online marketplaces that facilitate the sale of listed services generally collect and pay GST at the standard 15% rate when the service is performed, provided or received in New Zealand.
This applies whether the seller is GST registered or not, subject to the relevant marketplace rules.
For example, suppose a customer pays $100 for a listed service before GST.
GST at 15% would be:
$15 GST
The customer-facing transaction would therefore be $115 including GST.
The way that $15 is accounted for can depend on whether the underlying seller is GST registered and whether the flat-rate credit scheme applies.
What Is the 8.5% Flat-Rate Credit?
The flat-rate credit is relevant to eligible sellers who are not GST registered.
Under the marketplace rules, the marketplace generally:
- Collects GST at 15%.
- Passes 8.5% of the GST-exclusive supply value to the eligible seller.
- Pays the remaining 6.5% to Inland Revenue.
The 8.5% credit is intended to recognise GST costs incurred by non-GST-registered sellers when providing listed services.
For example, if a qualifying listed service has a GST-exclusive value of $100, GST is $15. An eligible non-GST-registered seller could receive an $8.50 flat-rate credit while $6.50 is paid to Inland Revenue.
GST on Online Marketplaces NZ: What Business Owners Should Check
If you operate a digital platform, delivery service or marketplace, understanding GST on online marketplaces NZ should be part of your regular tax planning. The GST treatment can depend on how your platform operates, who contracts with customers and whether your business is supplying the service itself or facilitating a supply by another provider.
One of the first things to check when reviewing GST on online marketplaces NZ is the flow of money. Consider who charges the customer, who receives the payment, who pays the service provider and whether your platform retains a commission or fee. These arrangements can help determine how the GST rules apply to the transaction.
Your contracts are equally important when assessing GST on online marketplaces NZ. Review your customer terms, supplier agreements, contractor arrangements and marketplace conditions. The wording of these agreements can help establish who is responsible for supplying the service and what role the platform plays in the transaction.
Businesses should also review GST on online marketplaces NZ whenever they change their operating model. Adding a new delivery service, introducing contractors, changing payment providers, launching an app or expanding into a different type of service can create new GST considerations.
Another important part of GST on online marketplaces NZ is understanding whether the underlying service is one of the listed services covered by the special marketplace rules. Food and beverage delivery, ride-sharing and certain short-stay accommodation arrangements have specific GST provisions.
If you are uncertain about GST on online marketplaces NZ, don’t assume that the GST treatment used by a competitor automatically applies to your business. Two businesses can provide similar services to customers while having different contractual and commercial arrangements.
Getting advice about GST on online marketplaces NZ before changing your business structure can help you identify potential GST issues early. It can also give you a clearer understanding of your record-keeping, GST return and Inland Revenue obligations.
Is the 8.5% Flat-Rate Credit Taxable Income?
This is an important question because GST and income tax are separate parts of the tax system.
Inland Revenue states that non-GST-registered sellers receiving flat-rate credits have an option regarding whether those credits are treated as assessable income, subject to the applicable rules.
This means a seller should not automatically assume that a GST credit has no income tax consequences.
If you’re unsure how marketplace income should appear in your income tax return, review the current IRD guidance or obtain professional advice.
What Happens If You Are GST Registered?
If you are GST registered and provide listed services through a qualifying online marketplace, the treatment is different from that of a non-GST-registered seller.
Inland Revenue states that GST-registered sellers generally treat qualifying listed-service supplies through a GST-registered marketplace as zero-rated supplies in their GST returns.
The marketplace accounts for GST on the customer-facing supply.
A GST-registered seller must still:
- File GST returns
- Maintain appropriate records
- Tell the marketplace their GST registration status
- Account for other taxable supplies
- Claim eligible GST on business expenses
If the business also supplies listed services outside an online marketplace, the normal GST rules can apply to those supplies.
When Do the Marketplace GST Rules Not Apply?
This is one of the most important questions when considering GST on online marketplaces NZ.
Not every app, website or digital platform is treated as an online marketplace.
Inland Revenue gives the example of a business that:
- Supplies its own services directly to customers
- Contracts with those customers
- Uses employees or independent contractors to provide the service
In a food-delivery example, a company that sells delivery services directly to customers and hires contractors to perform those deliveries is not automatically treated as an online marketplace simply because the customer orders through an app.
Read IRD’s guidance on when apps and websites are not online marketplaces.
Marketplace vs Direct Supplier: What’s the Difference?
Model 1: Online Marketplace
Customer
↓
Online Marketplace
↓
Independent Service Provider
The marketplace rules may apply if the relevant requirements are met.
Model 2: Direct Supplier
Customer
↓
Delivery Business
↓
Employee or Contractor
The delivery business may be the supplier and the special marketplace rules may not apply.
The actual commercial and contractual arrangements need to be reviewed before deciding which treatment applies.
Why the YUMMi Case Matters to Other New Zealand Businesses
The reported YUMMi dispute is relevant beyond the food-delivery sector because it illustrates how business structure can affect tax treatment.
Two businesses may look almost identical to customers while having different GST obligations because their contracts and operating models are different.
For businesses researching GST on online marketplaces NZ, some of the most important questions are:
- Who contracts with the customer?
- Who charges the customer?
- Who receives the customer’s payment?
- Who sets the terms and conditions?
- Who is responsible for providing the service?
- Is the service a listed service?
- Is the underlying seller GST registered?
- Does the supply actually occur through an electronic marketplace?
These questions can become particularly important when a business changes its commercial model.
8 Questions to Ask About GST on Online Marketplaces NZ
-
Who contracts with the customer?
Determine whether your business or the underlying provider is responsible for the customer relationship. -
Who charges the customer?
Review who authorises and processes the customer payment. -
Who receives the money?
Understand how customer payments move between the parties. -
Who sets the terms?
Platform terms and conditions can be relevant to the GST analysis. -
Who supplies the service?
Determine whether your business is the actual supplier or is facilitating a supply by another business. -
Is the service listed?
Check whether the transaction involves ride-sharing, food and beverage delivery or short-stay accommodation. -
Is the seller GST registered?
The GST treatment can differ depending on registration status. -
Are there transactions outside the marketplace?
Supplies made outside a qualifying marketplace may remain subject to ordinary GST rules.
GST on Food Delivery in New Zealand
Food delivery is particularly relevant to the current discussion because it is one of the listed services covered by the marketplace GST rules.
The GST treatment can depend on whether the delivery service is supplied through a qualifying marketplace or directly by a delivery business.
For a GST-registered seller providing qualifying delivery services through an online marketplace, the listed-service supply is generally treated as zero-rated to the marketplace.
This does not mean the business can ignore GST altogether.
It may still need to:
- File GST returns
- Maintain supporting records
- Account for other taxable supplies
- Claim eligible GST on business expenses
See IRD’s guidance on GST for food delivery and ride-sharing expenses.
What Records Should Marketplace Sellers Keep?
Accurate records are essential for anyone earning income through an online marketplace.
Depending on the business, relevant records may include:
- Marketplace statements
- Gross income
- Delivery fees
- Fares
- Tips and bonuses
- Marketplace commissions
- GST information
- Flat-rate credits
- Business expenses
- Vehicle-use records
- Contracts and platform terms
- IRD correspondence
Good records can also become extremely important if Inland Revenue later asks questions about your GST or income tax position.
When Does an Online Marketplace Need to Register for GST?
Inland Revenue states that a business generally needs to register for GST when its total taxable sales are more than, or are expected to be more than, $60,000 in a 12-month period.
For an online marketplace, the calculation can involve sales from listed services facilitated through the marketplace as well as other taxable activities.
This is an area where businesses should review their full revenue model rather than looking only at platform commissions.
Check IRD’s GST registration guidance for online marketplaces.
What If Inland Revenue Questions Your GST Treatment?
If Inland Revenue contacts you about GST, don’t ignore the correspondence.
Start by identifying exactly what IRD is asking for.
1. Read the IRD Letter Carefully
Identify the tax period, issue, documents requested and response deadline.
2. Gather Your Evidence
This may include contracts, invoices, marketplace statements, bank records, GST returns, financial statements and correspondence.
3. Review Your Business Structure
Check whether your actual transactions match the GST treatment used in your returns.
4. Check the Deadline
Some IRD processes have strict response timeframes.
5. Get Help If You Are Unsure
If the issue involves an audit, dispute, reassessment or significant GST liability, professional assistance may help you understand your options.
What If You Receive an IRD Audit Letter?
Receiving an IRD audit letter does not automatically mean you have done something wrong. However, it is important to understand what Inland Revenue is requesting and respond within the relevant timeframe.
If you receive an IRD audit or review concerning GST, marketplace income or your business tax position, our guide can help you understand the initial steps.
How to Avoid Common GST Mistakes
GST errors can occur when businesses claim private expenses, fail to keep supporting documents, misunderstand marketplace statements or report net income instead of understanding the underlying transaction.
If you are GST registered, understanding what you can claim and how GST returns work is important for maintaining accurate records.
Read IRD Guru’s guide to claiming GST in New Zealand for more information about GST claims, eligible expenses and common mistakes.
What Should You Do If You Are Unsure About Your GST Position?
If you’re unsure how GST on online marketplaces NZ applies to your business, don’t rely solely on how another platform handles its tax.
Instead:
- Map the transaction from customer order to payment.
- Review your customer and supplier contracts.
- Identify who is supplying the service.
- Determine whether the service is a listed service.
- Establish whether the supply is made through an electronic marketplace.
- Check the GST registration status of the relevant parties.
- Review your GST returns and supporting records.
- Obtain professional advice if the treatment remains unclear.
Why Getting GST Advice Early Can Help
Tax problems are often easier to address before they become formal disputes.
A business may begin with a straightforward model and later introduce:
- A mobile app
- Independent contractors
- Online payments
- Marketplace commissions
- Multiple suppliers
- Delivery services
- Subscription revenue
- New digital services
Each change can create new tax questions.
Reviewing your GST treatment when the business model changes can help reduce the risk of discovering a problem only after Inland Revenue starts asking questions.
People Also Ask About GST on Online Marketplaces NZ
What is the YUMMi-IRD dispute about?
According to the 17 August 2026 report supplied for this article, YUMMi founder George Evans has been disputing how Inland Revenue treats his delivery business for GST purposes. The reported dispute concerns the classification of the business compared with other delivery platforms.
What is GST on online marketplaces NZ?
New Zealand has special GST rules for certain listed services supplied through qualifying online marketplaces. These include ride-sharing, food and beverage delivery, and short-stay and visitor accommodation.
What is the GST rate for online marketplaces?
Qualifying online marketplaces generally collect GST at the standard 15% rate on listed services performed, provided or received in New Zealand.
What is the 8.5% flat-rate credit?
Eligible non-GST-registered sellers can generally receive an 8.5% flat-rate credit from the marketplace. The remaining 6.5% is generally paid to Inland Revenue.
Do all apps and websites have to collect GST?
No. Not every website or app is an online marketplace for GST purposes. A business that directly supplies its own service and uses employees or contractors to perform that service may fall outside the special marketplace rules.
Does GST apply to food delivery?
Food and beverage delivery is one of the listed services covered by New Zealand’s marketplace GST rules when the relevant requirements are met.
Do I still file GST returns if I am GST registered?
Yes. GST-registered sellers providing qualifying listed services through a marketplace generally include those supplies as zero-rated in their GST returns and continue to account for GST on other relevant taxable supplies.
What should I do if IRD questions my GST treatment?
Read the correspondence carefully, identify the deadline, gather your supporting documents and consider professional advice if you are unsure how to respond.
Frequently Asked Questions About GST on Online Marketplaces NZ
What is the YUMMi-IRD dispute about?
According to the 17 August 2026 report supplied for this article, YUMMi founder George Evans has been disputing how Inland Revenue treats his delivery business for GST purposes. The reported dispute concerns whether the business should receive the same GST treatment as certain competing delivery platforms.
What is GST on online marketplaces in New Zealand?
New Zealand has special GST rules for certain listed services supplied through qualifying online marketplaces. Listed services include ride-sharing and ride-hailing, food and beverage delivery, and short-stay and visitor accommodation.
What is the GST rate for online marketplaces in New Zealand?
Qualifying online marketplaces generally collect GST at the standard 15% rate on listed services performed, provided or received in New Zealand.
What is the 8.5% flat-rate credit?
Eligible sellers who are not GST registered can generally receive an 8.5% flat-rate credit from the marketplace. The marketplace generally pays the remaining 6.5% to Inland Revenue.
Do all websites and apps have to collect GST?
No. Not every website or app meets the definition of an online marketplace for GST purposes. For example, a business supplying its own delivery service directly to customers and using employees or contractors to provide that service may not be subject to the marketplace rules.
Does GST apply differently if I am GST registered?
Yes. GST-registered sellers providing qualifying listed services through a GST-registered online marketplace generally treat those supplies as zero-rated in their GST returns.
Can I claim GST on expenses as a delivery driver?
If you are GST registered, you may generally be able to claim GST on eligible business expenses, subject to the normal GST rules and any private-use adjustments.
What happens if my business operates through and outside a marketplace?
Supplies made through a qualifying marketplace and supplies made outside one can have different GST treatment. Ordinary GST rules may apply to supplies that are not made through an online marketplace.
What should I do if Inland Revenue disputes my GST treatment?
Review the IRD correspondence, check the relevant response deadline, gather your contracts and financial records, and obtain professional advice if you are unsure about your rights or obligations.
Concerned About Your GST Treatment or an IRD Dispute?
The YUMMi case is a reminder that GST can become complicated when a business operates through a digital platform, uses contractors, receives marketplace payments or provides delivery services.
If you’re unsure whether your business is applying GST correctly, have received an Inland Revenue letter, or are already dealing with an IRD review, audit or dispute, don’t wait until the issue becomes harder to resolve.
IRD Guru Can Help With:
- GST compliance and reviews
- IRD audits and investigations
- IRD disputes and objections
- Tax return issues
- IRD correspondence
- Tax debt and payment arrangements
- Penalty and interest matters
- Business tax compliance
Our team helps New Zealand individuals, contractors and businesses understand Inland Revenue requirements and deal with IRD matters more confidently.
Received an IRD letter or worried about your GST position? Tell us what happened and we’ll help you understand the next steps.
Need Professional Help With an IRD Matter?
If your GST issue has already developed into an Inland Revenue review, audit, dispute or compliance problem, getting help early can make it easier to understand what IRD is asking for and how to respond.
Explore IRD Guru’s IRD and tax support services for assistance with audits, disputes, overdue returns, payment arrangements, penalties and other Inland Revenue matters.
Key Takeaway: What Businesses Should Learn From the YUMMi Story
The reported YUMMi-IRD dispute highlights a broader issue for New Zealand businesses: GST treatment depends on the actual structure and operation of the business.
If you operate a delivery business, digital platform or online marketplace, don’t assume that your GST obligations are the same as those of another business simply because the customer experience looks similar.
Review:
- Who contracts with the customer
- Who receives payment
- Who supplies the service
- Who controls the platform
- Whether the service is a listed service
- Whether the supply is made through an electronic marketplace
- Whether the seller is GST registered
If Inland Revenue has already contacted you, don’t ignore the issue. Review the correspondence, understand the deadline and get professional help if you’re unsure about your position.
Need help dealing with IRD? Contact IRD Guru for professional IRD and tax support.
Disclaimer
This article provides general information about GST and New Zealand tax rules and does not constitute personalised tax, accounting or legal advice. The YUMMi-specific information is based on the news report referenced in this article. GST rules and Inland Revenue guidance may change, and the correct treatment depends on the specific facts, contracts and commercial arrangements of each business. Obtain professional advice before making decisions based on this information.
