Private ruling: GST and sale of property
Date of advice: 24 October 2019
Published: December 2019

Ruling: Q1: Is GST payable on the sale of your property? | A1: No, GST is not payable on the sale of your property . GST is payable on taxable supplies. Among other things in order for a sale to be a taxable supply the sale must be done in the course of an enterprise carried on by the entity that is making the supply. Considering your circumstances on this occasion we are of the view that the sale of the property is not made in the course of an enterprise carried on by you. However, if you continue to engage in property development of this nature we will be required to reconsider our decision regarding whether your activities amount to an enterprise.

Relevant facts and circumstances: · You purchased vacant land to build your principal place of residence. · During construction of the residential premises your personal circumstances changed whereby you are no longer required to use the property as your principal place of residence. · You have just secured a purchaser for the property. · You have not carried on any property development activities in the past and the sale of the property is merely due to personal circumstances.

Relevant legislative provisions: Section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999