Sale of property - Activity statements for GST at settlement
The ATO has released some new instructions for vendors completing their activity statements in relation to the sale property due to a large number of errors being made since the introduction of the GST withholding rules.
Vendors still need to report the property sale in their activity statement and include the GST component at Label 1A even if the purchaser has withheld an amount, although the amount withheld and paid by the purchaser is not reported. The ATO advises that a credit for the amount the purchaser withheld and paid to the ATO will appear on the vendor’s integrated client account once the activity statement is processed.
For additional information, or to discuss how this may affect you, please contact us by email or phone.