GST registration

Question from botany updated on 4th March 2020:

I own a few apartments in Auckland. One of these is in a hotel pool but I did not register for GST at the time of purchase. The rest are residential apartments which I lease out. The hotel pool apartment gives me less than $15,000 nett income per year. But including rental income from the other residential apartments I own, my nett total rental income for last 12 months is more than $60,000. Do I have to register for GST now?



Our expert Mark Withers responded:

No. Residential rental on long term tenancy is an exempt activity for GST. Only the income from properties where a commercial taxable activity is being undertaken need be considered for GST. This could include the residential properties if they were rented short term for holiday let but that does not seem to be your activity. Also, note the $60,000 threshold is gross income not net income and I imagine that you are below this with a single property.



Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.

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