• The place to find the right expertise and make better decisions
  • Find the right expertise
Lina A.
Lina A.
Melbourne, VIC
4 Likes
1 Followers

I am intending to purchase a commercial property - what advice can you offer to not pay GST and reduce stamp duty?

10 months ago

Responses

Commercial Property and NO GST ---- they don't go together, as per my understanding. If you find someone who thinks otherwise, I would be interested to know about that as well.

What you are asking for is more like tax avoidance than a tax planning question from how I would see this.

Comments

I don't understand how it can be a tax avoidance thing if I'm the one paying for the GST and I can get the GST back when I lodge my BAS. I'm thinking more along the lines of cashflow, if there's no GST, then I can purchase a property with a higher value.

Also, you should know this as an accountant, certain commercial property sales have no GST applicable and could be because the vendor is not registered for GST or is being sold as a going concern, amongst other reasons.

Hi Lina,
Apologies if i have offended you in anyway.
The way you had mentioned in your question - what advice can you offer to not pay GST and reduce stamp duty?, it came across as if you didn't want to pay GST. My answer was purely to that fact, as in cases of commercial property I have not come across anyone who is not registered for GST.
If you could have been more clearer about what your intention is, response to your query would have been different.
As an accountant, I purely go on facts given and provided to me and on this platform I don't have any intention to put anyone down.
I try and do my best to let the other party know about what i feel about the topic and my interpretation of the question asked.
On this platform based on limited information provided in most cases, no answer can be 100% correct or incorrect and possibly you should also factor in those things.

Anyways, thanks for your response and I reckon it is in my best interest to answer to questions that are absolutely clear.

All the Best.

Hi Lina,

I dont know that you will dodge Stamp duty......property is property and stamp duty is something you just have to make room for in your budget. (I know there are exemptions but in general not many investors buying property from unrelated parties dodge this bill)

As for GST....it depends on all sorts of things:
1: whether the vendor is registered for GST
2: whether the sale is a "going concern"
3: and also if you are registered for GST.......because if you ARE and the property is subject to GST then you are out of pocket for a short period of time only.....

So the best thing you CAN do to ensure that you dont accidentally shoot yourself in the foot is get advice from someone who knows what they are talking about. And be prepared to pay for it, because it IS a complex area, and the consequences of getting it wrong are potentially quite expensive.

good luck
BC

Hi Lina,

Generally no scope to avoid stamp duty, or even minimise. It will be the transfer fee of the property that will attract the duty.

GST can be avoided where the property is currently leased. Will then be sold as a 'Going Concern'. The GST is just a timing issue, as you will be able to get the GST back on the first BAS you lodge after payment. Where this is happening, financiers can take this into account and allow a few months to pay back the GST portion without hiking their rates. speak to your broker.

Make sure you speak to your accountant (or get one to speak to) before you go too far with these plans. There are other issues you need to get across before you sign on the dotted line!

Todd.

Your Answer

If you wish to include a video or audio response, you can do this by including links to Youtube, Vimeo or SoundCloud (https://www.youtube.com/watch?v=xxxxxxxxxx OR https://vimeo.com/xxxxxxxxx)

<% error.message %>