Private ruling: GST and the margin scheme
Date of advice: 12 September 2019
Published: November 2019
Ruling period: 1 September 2019 till quarter ending 31 December 2022
Date scheme commenced: 1 September 2019

Ruling: Q1: Is Entity A eligible to use the margin scheme on its sale of the property located XYZ? | A1: Yes.

Relevant facts and circumstances: Entity A is a company that is registered for GST since 1 July 2000. Entity A owns vacant land (the Land). The Land was acquired by Entity A prior to 1 July 2000. Entity A has used the Land that it owns to carry on an activity of leasing (for agistment) to a third party tenant. The supply of the lease to the tenant has been treated as a taxable supply since 1 July 2000. The Land ceased to be leased in late 2018. Entity is currently marketing the Land for sale and should a buyer be found the parties will enter into a written agreement that the margin scheme will apply.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 75-5