• Commercial premises

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

    On this page:

    Selling commercial premises

    You can claim GST credits on purchases you make that relate to selling the property – for example, the GST included in real estate agents' fees.

    You may also sell commercial premises:

    If you purchase commercial premises 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 that relate to buying the property – for example the GST included in solicitors’ fees.

    You cannot claim GST credits if:

    • the seller used the margin scheme to work out the GST included in the price
    • you are 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 premises

    As a lessor of a factory or shop, you are liable for GST on the rent you charge if you are registered, or required to be registered, for GST.

    You can claim GST credits on purchases you make that relate to renting out your property – for example, the GST included in the managing agent’s fees.

    As a lessee you may be able to claim GST credits for the GST included in rent you pay if you lease the property to carry on your business and you are registered, or required to be registered, for GST.

    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: 20 Nov 2017QC 21960