GST and Stamp Duty question for the property experts

[Mick_Marsh]

Simple question.
I'm looking at buying a big shed. I've found one I quite like. It's been on the market now for over two years.
Here's the catch, the vendor reckons I have to pay GST.
Do I have to pay GST and stamp duty?
OR
Do I have to pay GST or stamp duty?

[p38arover]

Is it a private sale or from a company? If from a company and the shed is new, then you may have to pay GST. How was it advertised? Unless plus GST is specified, can it be levied after the sale?

I doubt that stamp duty is payable. See http://www.sro.vic.gov.au/sro/SROnav.nsf/LinkView/BB27573181AF975ACA2575D1000D115ECD1B48B2849A0120CA 2575C1008058E7 - it is applicable to land and building but I doubt for a shed alone.

We need someone who knows tax law.

The Duties Act 2000 doesn't seem to apply to buildings alone. http://www.austlii.edu.au/au/legis/vic/consol_act/da200093/

[tonic]

This one is actualy very simple I think and should go something like this.

Is the shed being sold by an entity (private person, company, business, partnership)that is registered for GST? If so and the shed appears on their balance sheet then second hand or new they must charge GST when they dispose of it.

If the shed is being sold by a private individual from their backyard there is no GST, just like selling a car privately.

Stamp duty only occurs on the sale of land, being land,units,factories etc etc.

[Mick_Marsh]

Maybe I wasn't quite clear enough.
The shed is erected and on land. It is a factory/warehouse.
It is advertised "make an offer" in some adds and "plus GST" in others.
The GST they have calculated is on the sale of land and structure.

[scarry]

You will definitely have to pay stamp duty & also maybe land tax later in the year:mad:

I think if the building has tenants & is a going concern you may not pay GST.

Or if you do pay GST on the purchase price,and are registered for gst you may be able to claim it back on your BAS.

[Mick_Marsh]

No tennants.
I'm not registered for the GST.
Private use.
It's a potential new home for the Landies.

[tonic]

That would be correct then I would say. The owner of a factory/shed would most likely be registered for GST and would have to add it to the sale. It's like buying a second hand car from a yard or a private person, the yard has to add GST but the private seller does not.

This is one for the accountants to get it right. Are you going to use the shed for business and buy it through and entity that is registered for GST?

If so I am fairly sure the GST will be returned to you on your next BAS after the sale. Most banks will lend this money seperately on the sale so you can pay it back as one amount when your BAS return has been done.

If you are not registered for GST you might want to register with GST before you go into a contract, that way you should be able to claim the GST back if I am right about the last bit.

Now that I know it is freehold you will also have to pay stamp duty.

When advertising as make an offer it is just that, make an offer. When advertising with a price they must specify including or plus GST.

Done a bit of this but I normally always double check with my account. A good commercial bank manager should be on the money too if you dont want to pay your account.

[Mick_Marsh]

Can't register for GST as you must be making more than $50k as a business.
I don't run a business and therefore make zip.
I think I'll let this one pass. I'm better off buying a home on acreage and building a big shed.

[tonic]

Sounds like the go to me, then you dont have to travel to work, polish or play with your toys.

Just got back from 12 days away with work so I am bit slow on things, having thought about it, I think the only property that does not have GST is residential, everything else has to have it I'm fairly sure.

We live on acreage and when I finally found the 110 at the right price I was able just to put it in the 6x12 and start the fix up for rego each afternoon after work. It is handy to be at home.

Good luck with it.

Tony