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Edited version of your written advice
Authorisation Number: 1051467699086
Date of advice: 18 December 2018
Ruling
Subject: GST and the sale of property
Question 1
Is the sale of a certain property an input taxed supply?
Answer
Yes, since the property was rented out for five years continuously and not advertised for sale.
Question 2
Does Division 142 of A New Tax System (Goods and Services Tax) Act 1999 (the GST Act) apply to prevent the refund of excess GST paid for the sale of the property?
Answer
No, since the GST on the sale was not passed on.
This ruling applies for the following period:
1 January 2017 to 31 March 2017
Relevant facts and circumstances and brief reasons
You built a property then rented it out for more than 5 years continuously and did not advertise it for sale in that time.
You subsequently sold the property and reported the sale as GST taxable because of a systems error. You considered the sale to be an input taxed supply at all times.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 Division 129
A New Tax System (Goods and Services Tax) Act 1999 Division 142
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