Investing from Australia
Question from Prue updated on 1st February 2012:
Our expert Mark Withers responded:
It depends on whether the vendor is registered for GST and whether you, the purchaser will conduct a taxable activity from the property. Remembering that residential rental is exempt from GST. So generally it would need to be a commercial property to be registerable for GST. If the vendor is a property developer they may well look to charge GST on the sale, make sure you negotiate on an "inclusive of GST" basis rater than a plus GST basis. If they are registered and you are registering before settlement date for a taxable activity and the property will not be your residence the sale must be zero rated under the new compulsary zero rating rules. Regards Mark
Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.