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Edited version of private advice
Authorisation Number: 1051580457664
Date of advice: 12 September 2019
Ruling
Subject: GST and the margin scheme
Question
Is Entity A eligible to use the margin scheme on its sale of the property located XYZ?
Answer
Yes.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 75-5
This ruling applies for the following periods:
1 September 2019 till quarter ending 31 December 2022
The scheme commences on:
1 September 2019
Relevant facts and circumstances
Entity A is a company that is registered for GST since 1 July 2000.
Entity A owns vacant land (the Land). The Land was acquired by Entity A prior to 1 July 2000.
Entity A has used the Land that it owns to carry on an activity of leasing (for agistment) to a third party tenant. The supply of the lease to the tenant has been treated as a taxable supply since 1 July 2000.
The Land ceased to be leased in late 2018.
Entity is currently marketing the Land for sale and should a buyer be found the parties will enter into a written agreement that the margin scheme will apply.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 75-5