All Topics / Commercial Property / Purchase costs on small factory/warehouse +gst question
Hi all, been looking at a few commercial properties for sale,small factories warehouses etc.
What i would like to know is, with an advertised price of 300k plus gst,this would be 30k payable on settlement, would the purchaser also have to pay stamp duty like a residential property? Also how is gst paid if the purchaser doesn't have an abn and is just a private investor? Thanks in advance for any comments or information.Yes you pay stamp duty on the purchase price (including gst).
Yes gst is payable at settlement as the vendor must remit this to the ATO, provided the vendor is also registered for gst.
Get yourself registered before your offer, pay your gst & claim it back asap. Then cease your gst registration. That way you get your gst back it& it only costs the extra in stamp duty.
You may wish to keep your gst status and abn as business tenants would prefer to be able to keep their gst and credits on their major expenses.
Solomon10 wrote:Hi all, been looking at a few commercial properties for sale,small factories warehouses etc.
What i would like to know is, with an advertised price of 300k plus gst,this would be 30k payable on settlement, would the purchaser also have to pay stamp duty like a residential property? Also how is gst paid if the purchaser doesn't have an abn and is just a private investor? Thanks in advance for any comments or information.Hi Solomon,
Yes, GST would be payable to the vendor at settlement.
If the purchaser is not registered for GST, the GST amount forms part of the cost base. It is in the purchasers interests to register for GST, so that they can claim back the GST amount on the next BAS.
Thanks guys,sounds a little bit more involved than residential,but still worth looking into i think. Paying stamp duty on gst,good old government with all fingers and toes in the pie as usual.
This is really very necessary to pay the stamp duty with the purchased price and gst also. And get registered yourself..
Thank you.
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