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  • When the withholding amount is payable

    You will be required to pay the withholding amount to us on or before the day the consideration for the supply (other than consideration provided as a deposit) is first provided under the contract.

    Under a standard land contract the withholding amount is payable to us on the day of settlement.

    Under an instalment contract the withholding amount is payable to us on the day the first instalment (other than a deposit) is paid.

    If, however, you're an associate of the supplier and you acquire the property for no consideration, you will be required to pay the withholding amount to us on or before the day on which you receive the supply.

    The due dates are intended to align the tax period in which the withholding amount is payable to the tax period in which your supplier will be liable to pay the GST on the supply.

    Deposits versus instalments

    Under the GST law a deposit is not regarded as consideration for the supply until it is either:

    • released to the supplier at settlement
    • forfeited.

    A typical example of a deposit is the 10% of the contract price paid by a purchaser to a supplier's real estate agent under a standard land contract.

    Knowing whether a payment is or isn't a deposit is also important for determining whether contracts entered into before 1 July 2018 are eligible for transitional relief.

    See also:

      Last modified: 07 Aug 2018QC 56253