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  1. #1
    Join Date
    Aug 2005
    Posts
    181

    Default Avoiding GST on selling trades - Going concerns?

    Hello,

    I vaguely remember a past comment with regards to trades where you can avoid having to pay GST on sale if the property is sold as a going concern.
    Can the pros please comment on that? IS there any legal way you can claim GST on purchase and not have to pay it on selling? (Have your cake and eat it too I know!!)

    Cheers,

    GEoff

  2. #2
    Join Date
    Jun 2005
    Location
    Hamilton
    Posts
    773

    Default

    IN commercial property if you buy it as a going concern that is with a tenant in place you dont have to claim it and if it is sold with a tenant you wouldnt pay it, but your contract would have to be written up plus gst if any to cover you. the only way I know of where you wouldnt pay it back on selling is if you purchased it empty and sold it as a going concern but it would be sold as plus gst if any. And of course you would claim it on purchase.
    so you dont really avoid it as you sell it x gst.

    as far as i am aware that is the only way and if you claim it why shouldnt you pay it? that is my question? if there is a legal way around it i am open to listening.

    this is also something we have to be careful of when purchasing off traders some of them may have their contracts written up plus gst, I never put it but of course i do pay gst on my trades and claim it on purchases but do all sales gst inclusive, saves confusing people.

    dont know if i have been much help, maybe someone can be more enlightening on the subject.
    Robyn

  3. #3
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    14,842

    Default

    Quote Originally Posted by moovet
    IS there any legal way you can claim GST on purchase
    and not have to pay it on selling? (Have your cake and
    eat it too I know!!)
    Here's my question that may lead to an answer, as well.

    If the building is empty AND it's second hand AND the
    vendor is not GST registered, you can claim back one
    ninth of the purchase price as GST.

    Then, if you sold the business of renting that building as
    a going concern, then the sale would be GST neutral.

    (That's on the presumption that a 'used' building can be
    treated as second-hand goods and I don't know if that's so.)


 

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