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GST 'go around' clause

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  • GST 'go around' clause

    Is anyone familiar with a "GST go around" clause in an agreement for sale and purchase [land].. and how this effects the transaction?

    It appears the vendor receives GST before having to pay GST, but being an overseas buyer I am not familiar with this aspect of GST or methodology. The land deal is in New Zealand.

    Thought I would see if anyone had some worthwhile input before discussing with my accountant. I like to have some idea of what I am talking about beforehand.

    Thanks in advance.

  • #2
    Basis of registration

    An invoice basis GST registered party can sometimes claim GST prior to paying. Depends on timing of GST registration, timing of settlement after deposit and assumes vendor is GST registered and you're not looking at a second hand goods claim

    Vendor may not like this idea if they are on an invoice basis for GST as they might well have to pay before receiving the GST from you... Now that would be a downer I suspect

    TALK TO YOUR ACCOUNTANT

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