Selling online in New Zealand: when Inland Revenue wants to know
A hobby isn't taxed. A business is, from the first dollar. Clearing out the garage on Trade Me is not income. Buying stock to sell at a profit, or turning a craft into a steady trade, usually is.
Inland Revenue's line: you're generally in business when you're providing or selling goods or services to other people with a sufficient level of activity and you intend to make a profit. "There is no minimum income level to be in business."
Hobby, household or business?
| You are… | Tax position |
|---|---|
| Selling your own used belongings | Not income, as long as you did not buy them to resell |
| Earning from a hobby with no real intent to profit | Not income, and you don't need to keep records or include it in your return |
| Buying items with the main purpose of reselling them | The profit is income: the sale price less what the item cost |
| Selling regularly, with the intent to profit | A business: income is taxable, and business expenses are deductible |
The middle rows catch people out. Flipping furniture, reselling sneakers or trading collectables can be taxable even without a formal business, because the items were bought to be sold.
Marketplaces now report sellers
Since 1 January 2024, online marketplaces resident in New Zealand must collect information about sellers who earn from relevant activity on their platform, under rules based on the OECD's model. They report it to Inland Revenue by 7 February after the end of each calendar year, and the first reports were made in early 2025.
That does not create a new tax. It means Inland Revenue can see income it previously had to go looking for, so the question of whether your selling is a business is worth answering honestly now rather than after a letter arrives.
GST for online sellers
GST registration becomes compulsory when your turnover from taxable activity reaches $60,000 in 12 months, or you expect it to. Below that it's voluntary. Once registered, you charge GST on your sales and claim it on your business purchases, and the taxable supply information on those purchases is what supports the claims.
The records a seller should keep
If your selling is a business, keep records of every sale and every cost for seven years:
- what you paid for stock, with the receipts, because the taxable amount is the sale price less the cost
- platform statements showing sales, fees and payouts
- selling costs: listing and success fees, postage and courier, packaging, and payment processing fees
- equipment such as a camera or printer used for the business, noting that items over $1,000 are depreciated rather than deducted at once
If you've been selling for a while
If you realise you have been in business without declaring it, Inland Revenue generally treats a voluntary disclosure more favourably than a shortfall it finds itself. Gather what records you have, rebuild the rest from platform statements and bank records, and talk to Inland Revenue or a tax agent.
Sources
Common questions
Do I pay tax on things I sell on Trade Me?
Not if it is a hobby or you are selling off your own belongings. If you are in business, buying and selling with a sufficient level of activity and intending to profit, the income is taxable and there is no minimum amount.
Do online marketplaces report my sales to IRD?
New Zealand-resident marketplaces have had to collect and report seller information to Inland Revenue for relevant activity since 1 January 2024, under rules based on the OECD's model. Reports are due by 7 February after the end of each calendar year.
Is money from selling something I bought to resell taxable?
It can be. Inland Revenue says an amount from selling personal property is income if the property was bought with the main purpose of selling it, and the taxable amount is the sale price less its cost.
Do I need to register for GST as an online seller?
Only if your turnover from taxable activity is $60,000 or more in 12 months, or you expect it to be. Below that, registration is voluntary.
What are listed services?
Ride-sharing and ride-hailing, food and beverage delivery, and short-stay and visitor accommodation. When they are sold through an online marketplace, the marketplace collects and returns the GST.
Every figure on this page is checked against Inland Revenue's own guidance and linked in the sources above. Last checked . Thresholds change each tax year, so if you are reading this well after that date, confirm the current figures before you rely on them. Terms.
Keep reading
How long do you need to keep receipts for Inland Revenue?
Seven years after the end of the tax year they relate to. What counts as a business record, when the clock starts, and where the records must be kept.
ReadGST receipts in New Zealand: what a receipt must show to claim GST
Tax invoices were replaced by taxable supply information in 2023. What a receipt needs at $200 and $1,000, and how to work out the GST in a price.
ReadNew Zealand tax year dates and deadlines
The NZ tax year runs 1 April to 31 March. When your IR3 is due, when tax is due, provisional tax dates, and the GST return dates that break the pattern.
Read