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Edited version of private advice
Authorisation Number: 1051594525528
Date of advice: 14 October 2019
Ruling
Subject: GST and claiming input tax credits
Question 1
Is Entity X (you) entitled to an input tax credit for the acquisition of the commercial property (Property)?
Answer
Yes you are entitled to claim the input tax credit in respect of the purchase of the Property.
This ruling applies for the following period:
1 December 20XX till 31 December 20XX
The scheme commences on:
1 December 20XX
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 11-20
Relevant facts and circumstances
You are a non-profit entity that is registered for GST.
You entered into a Contract of Sale in 20XX with the Vendor to acquire the Property.
The Property which consists of vacant land was acquired as a taxable supply from the Vendor for an amount of $X inclusive of GST. This is evidenced by the tax invoice you have provided which shows the consideration as follows:
Sale of land $X
GST $Y
Total Charges inc GST $XY
You purchased the Property to construct a commercial building which will be used as part of your activities. The Property and commercial building once constructed will not be used to make supplies that are input taxed.
You are registered for GST and report your GST amounts annually.