WebSubsection 38 – 325 (1) of the GST Act provides that the supply of a going concern is GST free if:- The supply is for consideration; and The recipient of the supply is registered or required to be registered for GST purposes; and The supplier and the recipient have agreed in writing that the supply is of a going concern. WebJun 3, 2014 · Generally the sale of a commercial building attracts Goods and Services Tax (GST) on the sale price. However, GST is avoided if the commercial property is sold as a “going concern”. Under the act governing GST, A New Tax System (Goods and Services Tax) Act 1999, a supply of a going concern occurs when a […]
Sale of business: the GST ‘going concern’ exemption
WebIf the business (whole or part thereof) is transferred as a going concern, the supply of the related assets can be treated as an excluded transaction. This means that the supply is neither a supply of goods nor services. GST is not chargeable on the transfer of assets as a result. Qualifying as an Excluded Transaction WebApr 23, 2024 · 23 April, 2024 Bret Gower. When selling a business as a “going concern” the transaction is zero-rated for GST purposes, subject to certain requirements being met. The requirements include that both the vendor and the purchaser are registered for GST in accordance with the Goods and Services Tax Act 1985 (“the Act”) at the “time of ... gangsta boo on drink champs
Selling a Business as a Going Concern and GST Exemptions
WebGenerally, where this tax exemption does not apply, 10% GST will be payable by the purchaser upon the sale of the business. The relevant legislation that applies to a sale of a business as a going concern is A New Tax System (Goods and Services Tax) Act 1999 (also known as the GST Act). WebA sale of a going concern is GST-free if all the following apply: The sale is for payment. The purchaser is registered or required to be registered for GST. The purchaser and seller have agreed in writing that the sale is of a going concern. If property is part of a GST-free sale … WebJul 29, 2024 · 1. The taxable person discontinues the business and ceases to be a taxable person ( Such as in case of death, or due to losses or otherwise. Goods forming … gangsta characters