Reply: 2.1.1.1
From: Dale Gatherum-Goss
Hi
>If the vendor elects to sell
>under the margin scheme, this
>will reduce the total amount
>of GST that will be part of
>the final resale price.
>But I cannot claim any GST
>credits on the construction
>costs?
Yes and no. The contract price is the agreed amount that will be paid for the property. That price will be GST inclusive (per the law and the all powerful ACCC) and it is the vendor's responsibility to remit the GST involved to the tax office, if applicable.
For the purchaser of the property, it means that they cannot claim any GST on the purchase of the property, BUT, they can still claim back the GST incurred in the development of the property.
>If the vendor does not sell
>under the margin scheme, but
>is GST registered, the amount
>of GST will be calculated on
>the final resale price but I
>can claim the GST on the
>original purchase price and
>the construction costs.
Again, the GST is included in the contract price for the land. If the vendor is registered for GST, and elects not to use the margin scheme, then the vendor is responsible for remitting the GST to the tax office in the BAS after the sale took place. The purchaser of the property included the GST in their costs on their next BAS after settlement.
If you are the purchaser, the GST that you are deemed to pay on the purchase of the property will be refunded (in full or in part) in your next BAS assuming you have no other transactions for the tax period in question.
>If the vendor is not
>registered for GST and and
>does not sell under the margin
>scheme, I cannot claim back a
>GST content in the initial
>purchase price? But will still
>have to pay GST on the final
>purchase price and will be
>able to claim GST on the
>construction costs.
That is right.
Does this help?
Dale
From: Dale Gatherum-Goss
Hi
>If the vendor elects to sell
>under the margin scheme, this
>will reduce the total amount
>of GST that will be part of
>the final resale price.
>But I cannot claim any GST
>credits on the construction
>costs?
Yes and no. The contract price is the agreed amount that will be paid for the property. That price will be GST inclusive (per the law and the all powerful ACCC) and it is the vendor's responsibility to remit the GST involved to the tax office, if applicable.
For the purchaser of the property, it means that they cannot claim any GST on the purchase of the property, BUT, they can still claim back the GST incurred in the development of the property.
>If the vendor does not sell
>under the margin scheme, but
>is GST registered, the amount
>of GST will be calculated on
>the final resale price but I
>can claim the GST on the
>original purchase price and
>the construction costs.
Again, the GST is included in the contract price for the land. If the vendor is registered for GST, and elects not to use the margin scheme, then the vendor is responsible for remitting the GST to the tax office in the BAS after the sale took place. The purchaser of the property included the GST in their costs on their next BAS after settlement.
If you are the purchaser, the GST that you are deemed to pay on the purchase of the property will be refunded (in full or in part) in your next BAS assuming you have no other transactions for the tax period in question.
>If the vendor is not
>registered for GST and and
>does not sell under the margin
>scheme, I cannot claim back a
>GST content in the initial
>purchase price? But will still
>have to pay GST on the final
>purchase price and will be
>able to claim GST on the
>construction costs.
That is right.
Does this help?
Dale
Last edited by a moderator:
