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23 November 2018


Sale, Purchase, Mortgage, Lease


GST withholding - purchaser requirements

If our client is purchasing residential property where the margin scheme applies, do they complete a GST residential withholding supplier notification?

At settlement, does our client receive a GST Invoice?


Thank you for the question.

The client as purchaser is not the supplier. The vendor completes the GST withholding notice and the purchaser then completes the GST property settlement withholding notification - form 1, obtains a payment reference number and a lodgement reference number then makes payment of the withheld GST to the Australian Taxation Office. GST property settlement date confirmation - form 2 is lodged on the date of settlement to confirm that settlement has occurred. These online forms can be found on the By Lawyers Purchase of Real Property matter plan.

The vendor may deliver a tax invoice to the purchaser on settlement but is not required to do so. Even if a tax invoice is delivered, there is no tax credit available to the purchaser.