Private ruling: Sale of a going concern
Date of advice: 6 August 2020
Published: September 2020

Ruling: Q1: Was the sale of your enterprise, a GST-free sale of a going concern under section 38-325 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: Yes.

Relevant facts and circumstances: · You sold your enterprise on XX XX XXXX · You and the purchaser agreed in writing that the sale was of a going concern. · Included in the contract of sale was, an on-going lease of the business premise, trading stock and all equipment. · The purchaser of the business was registered. · The business was carried on up to and including the date of settlement.

Relevant legislative provisions: Subsection 38-325(1) of A New Tax System (Goods and Services Tax) 1999 | Subsection 38-325(2) of A New Tax System (Goods and Services Tax) 1999

Reasons for decision: Summary: As all the conditions under subsections 38-325 (1) and (2) were met, this sale was a GST-free sale of a going concern.