Hi,
I was wondering if anyone could explain to me how GST works with commercial property (CP) as I see some CP prices in ads with the figure of say 200K + GST, and then some do not mention GST.
Is this because the GST is incorporated into the price of those CPs which not do not mention it, or is the vendor assuming you will know price + GST.
Or is GST only applicable to particular CPs and situations.
Cheers
Will.More advice from my (NSW) solicitor and accountant – that if you buy a going concern, then there is no gst applicable – this will only apply to commercial rentals if they are fully let – the best kind.[
]Thanks Michael and Hilary,
So from what you have written I can gather that as suspected GST would only apply to property value increases from July 2000 to date of sale if owned before intro of GST.
More advice from my (NSW) solicitor and accountant – that if you buy a going concern, then there is no GST applicable – this will only apply to commercial rentals if they are fully let – the best kind.
I am not sure what a ‘going concern’ means. Does what you are saying mean that if a CP is sold un-let then the seller will not have to pay GST and hence on GST for the purchaser, and if a CP is sold let then the seller and buyer will have to pay GST.
Is there particular criteria which determines if GST should be payable on purchase and hence sale of commercial properties, i.e. is there a guide defining which property class GST applies to.
Thanks
WillBasically, if you buy a commercial property with an operating tenant, no GST is payable. However, if the property is partially let, you may have to pay GST. And if the CP has no tenant, GST is applicable.
Also with CP, you have to register for ABN & GST as your rent includes GST & that must be remited to the ATO.
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