GST is a cost consideration in any property development activity, particularly for developments incorporating residential lots.
Where the GST margin scheme applies, the GST on certain taxable supplies of real property is calculated on the ‘margin’.
As purchasers are generally not registered for GST and are unable to claim input tax credits, maximising the use of the GST margin scheme can directly improve the net profit.
After this webinar, you will be able to:
- identify sales eligible for the margin scheme
- calculate the margin under the basic rules
- work through the look-back rules that apply to GST-free supplies of going concerns and farmland from 9 December 2008 (hint: there are risks and opportunities in here)
- apply the margin scheme to developments that have come from amalgamated lots
- understand when there is an increasing adjustment
- identify GST margin scheme problems where ‘joint venture agreements’ actually create tax law partnerships
- manage matters where the seller wants to argue it is not registered or required to be registered for GST – but it would be good to have a fall-back position applying the margin scheme.
The webinar will be recorded, so, if you are unable to attend at the advertised time, we will send you the live recording for future viewing.
We hope you are able to join us.