The Commercial Property is rented out through estate agent. Estate agent charges tenant the rent (say $1,000) and GST $100. Estate agent remits $100 GST to ATO. Tenant should be able to claim back $100 GST if registered for GST. Estate agent pays landlord full $1,100 he has collected from tenant (ignoring Agent's commission), and issues Tax Invoice to Landlord stating Rental Income $1,100 and, in brackets, 'GST paid $100'.
Does landlord have any GST obligations in relation to the rental income given that the estate agent has already dealt with it on his behalf, i.e. is landlord liable to pay $100 to the ATO as GST? Seems this would be double payment. If Landlord not liable for the GST, is his taxable income $1,000, even though he has received $1,100 from agent?
It does seem Estate Agent is out of pocket by $100 which seems strange but we do not have full visibility of his transactions.
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