Private ruling: GST and a sale of a property
Date of advice: 24 August 2016
Published: September 2016

Ruling: Q1: Is the sale of the vacant land (property) by an Australian entity (you) subject to goods and services tax (GST)? | A1: No, the sale of the property is not subject to GST. GST is payable on a taxable supply. You make a taxable supply if all the requirements of section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) are satisfied as follows: (a) you make the supply for consideration; (b) the supply is made in the course or furtherance of an enterprise that you carry on; (c) the supply is connected with the indirect tax zone (Australia), and (d) you are registered or required to be registered. However, a supply is not a taxable supply to the extent that it is GST-free or input taxed. The supply of the sale of the property will be taxable if it meets all the requirements in section 9-5 of the GST Act. Based on the information provided, your sale of the property does not satisfy all the requirements of a taxable supply under section 9-5 of the GST Act because: (i) your activity of selling the property does not constitute the carrying on an enterprise; and (ii) you are neither registered nor required to be registered for GST. Accordingly, your sale of the property is not a taxable supply and is not subject to GST.

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You own a property in Australia. The property is an area of vacant land. There are no buildings on the property. You are not registered for goods and services tax (GST). There have been no substantial renovations/alterations done to the property. The property has not been used to conduct a business. The vacant land was always used by the family for private purposes. You have not carried out any business on the vacant land. You are planning to list the property for sale to realise the estate's assets so the estate can be finalised. There was not attempt made to develop the property.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999, Section 9-5 | A New Tax System (Goods and Services Tax) Act 1999, Section 9-25 | A New Tax System (Goods and Services Tax) Act 1999, Section 23-5 | A New Tax System (Goods and Services Tax) Act 1999, Section 40-40