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Be careful if you have an Air B&B and have to register for GST.

If you sell to a non-GST registered person, such as someone who wants to use the house as a home, you will be required to pay GST on 100% of the amount you sell for. Your GST claim will be limited to 100% of what you paid for the house. Let’s use some figures:

House sells for $750,000. GST on this is $97,826.  It cost you $300,000 to buy the house. You can claim the GST on this figure - $39,130. When you first registered for GST, you would have made a GST claim based on the expected business use of the house - say 60% = $23,478. Assuming this estimate had not changed, you can now claim the difference being ($39130 - $23,478) = $15652.  So pay Inland Revenue ($97,826-$15,652) = $82,174.

You might have been registered for GST for only a few months! Ow! Very nice for the IRD though.