With the increased activity in the property market, we are seeing a corresponding increase in queries around how to deal with GST on land transactions.
A few basic rules that can help you initially are:
- Residential land transactions do not generally have a GST implication;
- The sale and purchase of bare land and commercial property usually will have a GST implication. It is vital you know the GST status of the other party to the transaction as early as possible as this could have a huge impact on the negotiations.