Hi, My understanding is that the sale of Farmland is usually considered GST Free if you fulfill conditions of farming for last 5 years prior to sale and that the buyer intends to use for farming.
However if the contract at the time of sale does not have the box ticked for it to be farmland does the absence of this designation in the contract have any impact on the GST treatment of the transaction, despite the substantive conditions being satisfied?
Hi @accountantcool,
The GST treatment of a farmland sale is based on whether the substantive conditions are met, not on whether a specific box is ticked in the contract. The sale is GST-free if the land was used for a farming business for at least 5 years immediately before the sale and the buyer intends to use it for a farming business.
Hi @accountantcool,
The GST treatment of a farmland sale is based on whether the substantive conditions are met, not on whether a specific box is ticked in the contract. The sale is GST-free if the land was used for a farming business for at least 5 years immediately before the sale and the buyer intends to use it for a farming business.
15 Apr 2026 · 4 min read time
15 Apr 2026 · 8 min read time
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