GST on Rental or Sale of Commercial and Industrial Properties – Are They Claimable?
Unlike residential properties, commercial and industrial properties are generally subject to Goods and Services Tax (GST) on both rental and sale transactions—provided the landlord or seller is GST-registered.
Can You Claim These GST Charges?
If your company is GST-registered, then yes—GST incurred on the rental or purchase of commercial or industrial properties, such as warehouses or factories, can typically be claimed. However, it’s important that the tenancy or purchase agreement is under the name of the GST-registered entity.
To support your GST claims, you must maintain valid documentation, such as tax invoices that include the landlord’s GST registration number, among other required details.
Considering Voluntary GST Registration?
Your company may choose to register for GST voluntarily. Before proceeding, it’s crucial to understand both the benefits and responsibilities that come with being a GST-registered business. Assess whether it aligns with your operational and tax needs.
For further guidance on GST claims or voluntary registration, feel free to contact our consultants at WLP.