Changes to GST from 1 April 2011
Mar 21, 2011
Changes are coming into effect for supplies made on or after the 1st of April 2011.
Land Transactions
Land transactions between registered parties will be zero rated for GST purposes as long as the purchaser:
Provided a written statement that the land is to be used in a taxable activity and is GST registered and the land is not to be used as a principal place of residence by the recipient, or any person associated with them.
The statement must be provided by settlement date, not the GST time of supply date.
Transitional rules apply for transactions entered into before 1 April so that the supplier has the option of using the old rules, or the new rules.
Nominations for land
This is where a purchase agreement states "or nominee" as the purchaser. Generally for land the supply is always treated as a supply to the nominee.
For land and buildings, if both the purchaser and the nominee are GST registered the supply is to the person who pays the full consideration. If both the purchaser and nominee pay part of the purchase price the supply is treated as to the purchaser, unless the purchaser and nominee agree in writing.
Dwellings and commercial dwellings
Definitions have been amended to a "commercial dwelling" to include farm stays, home stays, B & B's and serviced apartments. A dwelling is now a person principal place of abode.
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