GST Traps

29 September 2007 - Cairns Slane News Spring 2007

GST TRAPS

We have clients who have had to unexpectedly pay 12.5% more than they expected to pay for the property because they did not realise the purchase price was "plus GST" instead of "inclusive of GST". 

Another client sold their commercial property correctly stating it was "plus GST"  but then found they had to pay the GST to the IRD before the GST was payable by the purchaser.  They had to get bridging finance from their bank and pay interest on it.