𝐑𝐞𝐠𝐢𝐬𝐭𝐞𝐫𝐢𝐧𝐠 𝐟𝐨𝐫 𝐆𝐒𝐓 𝐰𝐡𝐞𝐧 𝐛𝐮𝐲𝐢𝐧𝐠 𝐚𝐧𝐝 𝐬𝐞𝐥𝐥𝐢𝐧𝐠 𝐚 𝐜𝐨𝐦𝐦𝐞𝐫𝐜𝐢𝐚𝐥 𝐩𝐫𝐨𝐩𝐞𝐫𝐭𝐲

John Reilly • October 7, 2024

Registering For GST When Buying and Selling a Commercial Property

You may be aware that It is compulsory to register for GST when your sales are above $75,000.  This does include the sale of a commercial property.  One of the reasons for registering for GST is a one-off commercial transaction, which selling a commercial property is.


If you do not register for GST and you sell your commercial property, you can be held liable for 1/11th of the sale price as GST.  This could potentially cost you tens of thousands of dollars.


Purchasers of commercial property should also register for GST.  If the purchase is a creditable acquisition you will be able to claim the GST on purchase, i.e. getting a large GST refund.  Another advantage is, that the banks are happy to fund the purchase GST-inclusive.  Having this refund is great to fund any small repairs or improvements you would like to make to the property before moving in.


You might have heard of people not charging GST on these transactions.  This can be the case if the Going Concern test is passed.  However, both the seller and the buyer of the commercial property still need to be registered for GST.


There are a few more issues, feel free to reach out if you would like to learn more.


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