REAO
23rd February 2007, 10:20 AM
Question
We are thinking of selling our home where we have lived for seven years. Will we have to pay GST on the sale?
Answer
There have been a lot of questions on how GST will affect residential and commercial properties and other charges associated with buying and selling property. The first principle to understand is that only businesses and individuals registered for GST can charge GST. If you are not registered for GST you cannot charge GST no matter what sort of property you are selling.
A vendor pays legal fees, agents fees, advertising, etc. Where anyone buying or selling a property pays costs to someone who is registered for GST they will have GST included in the costs they pay.
We are thinking of selling our home where we have lived for seven years. Will we have to pay GST on the sale?
Answer
There have been a lot of questions on how GST will affect residential and commercial properties and other charges associated with buying and selling property. The first principle to understand is that only businesses and individuals registered for GST can charge GST. If you are not registered for GST you cannot charge GST no matter what sort of property you are selling.
A vendor pays legal fees, agents fees, advertising, etc. Where anyone buying or selling a property pays costs to someone who is registered for GST they will have GST included in the costs they pay.