Money Doesn’t Come Without Guidance ...
You’re planning to sell a property of your business but you are not sure about the GST implications. There is a margin scheme which is also a way of working out the GST you must pay when you trade property as part of your business. You can only apply the margin scheme if the trade of the property is taxable. One-eleventh of the total sales price is the sum you normally need to pay for GST on a property sale.
You can use the margin scheme depending on by what means and at what time you first acquired your estate. For GST uses, the date when payment for the property was made would be the date that you have purchased the property. You can use the margin scheme if either:
You need to fulfil certain obligations to use the margin scheme. These may vary depending on the purchase and/or selling date of the property. In terms of the purchase date, the requirements may vary depending on whether you purchased your property-
In terms of selling, the requirements may vary depending on whether you make the sale-