If a vendor is selling a commercial property as a going concern (currently tenanted), does the vendor need to be GST registered? Does it make any difference if they are GST registered or not? Does the vendor also need to have an ABN?
Sorry, what do you mean by and for the next 4 years? Does the vendor (and the buyer) need to keep their GST registration active for the next 4 years after selling a commercial property, even if after the sale they won't own a commercial property?
The buyer of the property must continue to be registered for at least 4 years (or repay the GST claimed or notionally not paid due to the use of the going concern basis). Going concern isnt a tax free basis. Instead it simplifies the exchange of funds so both parties disregard GST if both are registered. I have seen several buyers who used GC who think they can then opt out of GST registration because the annual rent is under the $75K threshold. If the GC method was used they cannot. They must wait 4 years OR repay any GST. There are numerous adjustment events that can apply to GST registration changes. eg Company buys a car and claims GST. Ceases to trade. If it ceases to be registered then the GST that was claimed must be paid as an adjustment.
