ATO Community

GST on purchase of existing business..

Newbie

Views 51

Replies 1

Hi,

Good Morning. 

 

I have a question related to GST.

 

Does the GST apply to the sale/purchase of pre-existing business or on the sale of 100% shares of company?

 

If yes then who is Liable to pay GST, seller or purchaser?

 

In case if purchaser pays the GST is he eligible to claim it back?

 

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Community Support

Replies 0

Hiya @MuhammadMinhas,

 

If the business meets the eligibility to be sold as a going concern, the sale is GST free. (I will provide links below with more information.) If the business is not sold as a going concern, it would be considered a taxable sale.

 

As for the sale of shares, this is considered a financial supply, which is input taxed.

 

Selling a going concern.

Financial supplies.

1 REPLY 1

Most helpful response

ATO Community Support

Replies 0

Hiya @MuhammadMinhas,

 

If the business meets the eligibility to be sold as a going concern, the sale is GST free. (I will provide links below with more information.) If the business is not sold as a going concern, it would be considered a taxable sale.

 

As for the sale of shares, this is considered a financial supply, which is input taxed.

 

Selling a going concern.

Financial supplies.