GST is often the last thing you think about when negotiating the sale or purchase of a business. Whether the price you have negotiated, GST included or exclusive, can be easily forgotten in the excitement, or both parties will simply consider commercial sales to be GST-free, without considering all the elements of a “Going Concern”. If you wish to sell a partially constructed building and you have concluded lease agreements with third parties for this building, you can accept that the delivery is a GST-free delivery of a group in progress, provided that all the requirements of Article 38-325 of the GST Law are met (see above). The deacons would recommend that, until the change in the view of the ATO is confirmed by the ATO in a binding document for the ATO, you should consider a private GST ruling if you want to treat the sale as a service without GST. As a general rule, the sale of real estate is not considered in itself as an ongoing business. Recently, we were asked to advise us on the possible sale of a family`s commercial property. The consultation asked “what is a lawsuit and whether a free lease requires partial payment from the GST.” However, if the property is sold as a continuity activity, the transaction is valued at zero and VAT is due at 0% if all other criteria are met. A “Going Concern” is an invention of the Australian Tax Office (“ATO”) that allows the sale of a business to be a transaction without GST. It is always very desirable for buyers and sellers when selling businesses – this does not mean GST, and it gives both parties the certainty of what they pay and what they receive.

However, there are many sales rules and requirements for being a GST-free business that must be taken into account before entering into a sales contract. Many judgments deal with “Run of the Mill” issues such as registration, real estate sales and going concerns, but some interesting questions are raised. I refer in particular to the following judgments: as a general rule, the sale of a GST continuation group is free if all the following points are correct: always negotiate the price as GST EXCLUSIVE so that both parties know where they stand. If you pay GST, you will always receive the agreed price. A contract that is silent will be included GST, which will always be bad for a seller if no GST has been considered. You could include a clause in your contract stating that if the tax office does NOT consider your sale to be continuous, you can ask the buyer to pay the GST at any time. One of the problems is that the ATO immediately requires the GST, while the buyer can dispute the payment or has gone into liquidation. Some of the essential aspects of a continuation sale are as follows: a “Going Concern” has been defined by the South African Revenue Service (SRAS) as “the provision of an income-oriented activity” and that “the buyer must be put into possession of a business that can be carried on in the same form without the buyer taking any further action”. It is important that what the parties consider “necessary” may not always be sufficient to convince the ATO that the sale is considered viable. We recently acted for the buyer of a mortgage brokerage based in the outer suburbs. The business was almost exclusively run by phone and online, and there was little or no goodwill to locate with the leased premises from which it operated.

The buyer has already operated a mortgage brokerage business from the city and felt it was easy to manage the new business from its existing premises. . . .