GST & Purchase of Commercial Propertry

[buzzlightyear]

Some simple (dumb) questions, which I couldn't find an answer to after doing a search...

A commercial property is sold for $800,000 plus GST = $880,000

1. Is it usual, for the deposit (say of 10%) to be 10% of the $800k or $880k?

2. At settlement, does the purchaser pay to the vendor $880,000 or $800,000 to the vendor and $80,00 to the ATO

3. Is stamp duty calculated on $800k or $880k price?

4. From a finance perspective, does the lender look at the price of $800k or $880k for the purposes of determining serviceability

Thanks....

 

[jrc]

If you are registered for GST and the Vendor is you might be able to purchase as a "going concern". In this case GST is not paid and stamp duty is calculated on the purchase price without GST

If you do not purchase as a going concern and are both registered my experience has been that the price on the contract was GST inclusive and stamp duty was paid on the GST inclusive price.

Read your contract carefully.

 

[handyandy]

Another comment that my accountant mentioned is that the company/structure you use to purchase the property must be registered for GST prior to the date on the contract.


Cheers

 

[Dazz]

G'day Buzz,

I've never bought a vacant comm, so I could be talking out of my bum.....but I'll have a crack at it for ya ;

1. First one.

2. Last one.

3. First one.

4. Last one, but then you get the GST refunded whence you pop your first BAS statement in...if you are registered and over a certain size. Plenty of things in there to trip you up. Allow 6 months for the 80K to do the full lap through the GST circus. Let the Bank cough for it, and then pay the Bank straight back when you get it refunded.


Seriously.....only a bunch of squirrelly accountants could of thought up a circus system like this....no wonder normal people get confused.