GST on a Rent

[TurnipOrange]

If I rent a property which has a house and land for my business, Say 50% is the house and 50% is the land for my Income. Would the Land part of the Rent have GST I could Claim back?
Thanks for any help

[Rosco]

Hi Turnip Orange,

Generally zero rating would apply, so you wouldn't get GST back as such. It depends on the vendor as well, and what they were using the property for.

Obviously the house also has land associated with it, so I presume you mean the house and curtilage is worth 50% and the remaining land is worth 50%.

If your business is GST registered and would use the land for its taxable activity, then yes, you would be able to claim back 50% of the GST if the transaction is not zero rated. In this case the rent from your business to the land owning entity, would then be plus GST.

No GST would be claimed on the residential house, and no GST would be paid on the rent.

There is also change of use rules/adjustments that would apply if the % changed.

With any land transactions, and especially GST and zero rating, it is best to get expert advice.

Ross