Property problems: When to pay GST on your property purchase

A. As the property is a commercial property and the vendor is registered for GST the sale of the property to you will be a taxable supply. In that case, GST will be either nothing or charged at 12.5 per cent.

GST will be charged at 0 per cent if the commercial property is supplied as a going concern (and the parties agree in writing that it is the supply of a going concern).

It will be a going concern if the commercial property is to be sold subject to the existing tenant. You will also need to register for GST to get the benefit of this zero-rating. You could not claim a GST deduction on the purchase price, if the sale is zero-rated.

Read More - Opens in a new window