17.5% GST on sale in NZ

[poperr]

A sellling agent told me the following for the sale of my apartment in NZ....

"So we are marketing as inclusive of GST but this will have to be paid by you from the proceeds of the sale.GST is 17.5%"

Is that true? That means if I sell for the valued price of 280k, I will have to pay 49k in GST from the sale...

 

[drelly]

First of all, GST is 12.5%. Secondly, it's payable on profits from property bought with the *intention* of capital gain, not long-term buy and holds.

It sounds like you didn't claim the GST when you bought it but if you've bought it for a quick flick, that doesn't mean you don't have to pay GST on sale. Normally, when trading you claim the GST on purchase and then pay it on sale, so you're actually only paying the GST on the profit.

IF you are able to sell an apartment in Auckland (assuming) right now for a profit, you've probably had it a long time anyway!

 

[josko]

I sold two houses in NZ and paid no GST. As drelly, says there is CGT if the property was bought with the intention to flick it. Have you got an accountant in NZ?

try:

Richard Burge
0011 64 569 9069

Sherwin Chan and Walsh.

Regards Jo