The rules relating to the compulsory zero-rating of land transactions require transactions between GST registered parties involving land, or in which land is a component, to be zero rated. The aim of these rules is to prevent phoenix fraud schemes that were seeing the Inland Revenue out of pocket from one party claiming GST and the other never paying it.
Under the rules, a vendor must charge GST at the 0% rate when the following conditions are met:
- Ìý
•ÌýÌýÌýÌý The vendor is a registered person making a supply wholly or partly consisting of land to a purchaser who is a registered person.
- Ìý
•ÌýÌýÌýÌý The supply is made in the course or furtherance of the vendor's taxable activity.
- Ìý
•ÌýÌýÌýÌý The purchaser intends to use the goods (including the land)
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Web page updated on 17 Mar 2025 17:33