GST and Beach Houses

GST has had a turbulent 12mths....

Beach houses that are rented out short term, and owned by an entity that files GST returns, means short term rent is also subjected to GST. As many of these properties are now worth more than when they were originally purchased this will mean a significant GST implication if they are sold.

A solution maybe to to transfer the property to another entity which is not GST registered.

Other changes have included

  • GST increased from 12.5% to 15%
  • Land transactions between GST registered persons became zero rated
  • GST apportionment rules were changed for assets purchased that have mixed busienss and personal use

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