on 08-01-2019 01:20 PM
We act for purchasers of a commercial property. GST is payable on the purchase price. The GST component was inserted into the Transfer document when prepared. However, I note that when the Transfer is viewed it only shows the purchase price without the GST added. Land Victoria requires the consideration to show the full purchase price (inclusive of GST). Do we need to insert the consideration with the GST added in the Transfer document so that it reflects the correct amount payable? If we do this, will this also affect the Transfer as the GST has already been inserted when preparing the document?
Any feedback would be appreciated.
08-01-2019 01:37 PM - edited 08-01-2019 01:38 PM
You should include the GST in the gross consideration in the transfer in PEXA for Victorian matters so that you pay the correct lodgement fees associated with the property.
As an example, let's say a property sells for $500,000 and there is $50,000 GST owing.
Gross Consideration: $550,000
GST Amount (if known): $50,000