• Sale of a business as a going concern – checklist

    If you want to know about the GST consequences of the sale of a business as a going concern, you can apply to us for a private ruling. A private ruling sets out the Commissioner of Taxation’s opinion about the way a tax law applies, or would apply, to you in relation to a specified scheme or circumstance.

    If you are submitting an application about the GST consequences of the sale of a business as a going concern, this checklist will help you to answer:

    • question 7 of the Private ruling application form (registered agent) (NAT 13043
    • question 8 of the Private ruling application form (not for tax professionals) (NAT 13742).

    Applying for a GST private ruling

    You can apply for a GST private ruling by:

    If your application is about the GST consequences of the sale of a business as a going concern, this checklist will help you to answer question 7 of the Private ruling application form – tax professionals (NAT 13043) or question 8 of the Private ruling application form – not for tax professionals (NAT 13742).

    These questions ask you to include facts describing the scheme or circumstance and attach relevant documents.

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    GST definitions: business, sale

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    A going concern

    A supply of a going concern occurs when:

    • a business is sold, and that sale includes all of the things that are necessary for the business to continue operating, and
    • the business is carried on, up until the day of sale.

    The supply of a going concern is GST-free if it meets certain requirements including:

    • the sale is for a payment or consideration
    • the purchaser is registered, or required to be registered, for GST, and
    • the seller and the purchaser have agreed, in writing, that the supply is of a going concern.

    These requirements are outlined in more detail in section 38-325 of the GST Act and are explained in the Goods and Services Tax Ruling GSTR 2002/5External Link Goods and services tax: when is a 'supply of a going concern' GST-free?. This checklist includes references to paragraphs in this ruling.

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    GST definitions: payment, purchase

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      Last modified: 02 May 2014QC 17299