All Topics / Help Needed! / Paying GST on commercial property sale/purchase

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  • Profile photo of RoseFRoseF
    Participant
    @rosef
    Join Date: 2018
    Post Count: 1

    Hello!

    I have a question about the requirement to pay tax on the sale of a commercial property that I’m hoping someone can advise me on.

    I’m looking at potentially purchasing the commercial property, a warehouse unit, as a personal investment (not part of a business) and the advertised price is “plus gst” which makes me think the seller is expecting to have to pay gst on the sale. The unit alone wouldn’t provide an income over >$75k to the owner. So I’m wondering why they would need to pay gst?

    I understand that you have to register for gst if your enterprise’s income is more that $75k per year, so if the seller is selling the property as part of an enterprise that is already registered for gst, would that be why they need to pay gst? What if that particular property doesn’t provide an income of >$75k, does that make a difference?

    If the seller is required to pay gst on the sale – would I eligible for a gst credit? I’m planning on purchasing it as an investment and would be leasing it out.

    Thanks for your advice!

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    It’s like buying a book. Doesn’t matter if you are registered or not, but sale price includes gst. If you are registered you can claim the gst if not you wear it.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of NicolaNicola
    Participant
    @nabtower
    Join Date: 2015
    Post Count: 3

    Hi
    My understanding is if the property is tenanted then you don’t need to pay GST when purchasing but you do pay it if the property is vacant

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