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  • Commercial property

    If you sell commercial property, such as shops and factories, and you're registered or required to be registered for GST, you are generally liable for GST.

    On this page:

    Selling commercial property

    You can claim GST credits on purchases made relating to selling a property, for example the GST included in real estate agent fees.

    You may also sell commercial property:

    If you purchase commercial property to use in your GST-registered business, you can claim the GST included in the purchase price. You may also be able to claim GST on other expenses relating to buying the property – for example the GST included in solicitor fees.

    You can't claim GST credits if:

    • the seller used the margin scheme to work out the GST included in the price
    • you're not registered or required to be registered for GST
    • the seller wasn't registered or required to be registered for GST.

    Leasing or renting commercial property

    If you lease out a factory or shop, and you're registered or required to be registered for GST, you:

    • are liable for GST on the rent you charge
    • can claim GST credits on purchases made relating to leasing your property, for example the GST included in the managing agent’s fees
    • you may be able to claim the GST included in rent you pay.

    See also:

    • GSTR 2000/35 Goods and services tax: Division 156 – supplies and acquisitions made on a progressive or periodic basis (paragraphs 58 to 65)
      Last modified: 04 Oct 2019QC 60250