Private ruling: The application of the margin scheme to the sale of land and residential premises
Date of advice: 14 June 2018
Published: September 2018

Ruling: Q1: Will you be able to use the margin scheme when you sell residential properties to end consumers? | A1: Yes

Relevant facts and circumstances: You are the purchaser of land held by the vendor. The margin scheme was used when the vendor acquired the land originally. You are acquiring the land as a supply of a going concern.

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

Reasons for decision: Summary: You have not acquired the land as a supply which is ineliglible for the margin scheme, as per subsection 75-5(3) of the GST Act. You will be able to use the margin scheme, as long as you agree to do so in writing with future purchasers,