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Leon
Leon, Solicitor
Category: Australia Law
Satisfied Customers: 44150
Experience:  BEc Dip Ed, Dip Law (SAB) MTax (UNSW)
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If 2 smsf ,neither of which is registered for GST,buy and

Customer Question

Hi,...If 2 smsf ,neither of which is registered for GST,buy and sell a small commercial shed ($120000) is GST payable and how is it collected
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: My SMSF is selling to another smsf neither of which is registered for GST do I have to collect GST from the buyer?
JA: Is there anything else important you think the Accountant should know?
Customer: no it is a general simple question
Submitted: 4 months ago.
Category: Australia Law
Expert:  Leon replied 3 months ago.

My name is ***** ***** I am a NSW Solicitor. I will do my best to assist you with your question.

Expert:  Leon replied 3 months ago.

Good Morning.

If the shed is not a going concern then yes they have to pay GST but because they are not registered they are not able to claim the GST back.

If they sell the shed they will have to pay GST t the goverment because they would exceed the $75K. They would pay to the government 1/11th of the price they receive for the sale.

The accountant should be shown all the documents and should have had the SMSF register to get back the GST on the purchase. I hope this makes sense. You cannot change things now it is too late if you have bought the shed.

I hope this makes sense and is of assistance. if there is nothing further

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If I have missed anything, or you have any further questions please let me know

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Regards

Leon