I recently purchased a commercial property under personal name.
The property has long term tenants who continue to rent the place. There are no lease contracts in place and we'd like to keep it that way.
I am not registered for G.S.T and am not required to at this point (Total rent is not expected to exceed the 75k threshold in the near future)
The previous owner was registered for G.S.T and therefore the tenants have always included G.S.T in the rent.
One of the tenants has asked me to include G.S.T in the rent receipts as well as an ABN. Obviously, I am unable to satisfy this request because I cannot charge G.S.T, not to mention don't have an ABN! I understand that he wants this to claim G.S.T credit which is fair enough. I'm happy to reduce the rent slightly to make up for the lost G.S.T credits.
My questions are:
1. Would this be acceptable from an accounting point of view?
2. Do I need to provide him with anything else?
3. In the future, when rent takings exceed the threshold, what do I need to do besides register for GST? What are the implications?
Thanks.
The property has long term tenants who continue to rent the place. There are no lease contracts in place and we'd like to keep it that way.
I am not registered for G.S.T and am not required to at this point (Total rent is not expected to exceed the 75k threshold in the near future)
The previous owner was registered for G.S.T and therefore the tenants have always included G.S.T in the rent.
One of the tenants has asked me to include G.S.T in the rent receipts as well as an ABN. Obviously, I am unable to satisfy this request because I cannot charge G.S.T, not to mention don't have an ABN! I understand that he wants this to claim G.S.T credit which is fair enough. I'm happy to reduce the rent slightly to make up for the lost G.S.T credits.
My questions are:
1. Would this be acceptable from an accounting point of view?
2. Do I need to provide him with anything else?
3. In the future, when rent takings exceed the threshold, what do I need to do besides register for GST? What are the implications?
Thanks.