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Re: GST

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Newbie

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I recently purchased a new business 'as is' at 200k. The company I purchased from provided a tax invoice for 200k. Invoice does not show GST component. Business was not purchased as a going concern and included new equipment, fitout and POS.
Both were registered for GST. Am I able to claim GST on the 200k if it doesnt specifically say how much the GST component is?

Is it legal for the seller to sell the business without charging or paying GST. If all equipment is new (and listed on sale) how do I calculate depreciation?
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Most helpful response

ATO Certified Response

Former Community Support

Replies 0

Hi @Max123,

 

Welcome to our Community!

 

If you have not paid GST on the purchase of the property or business, then you will not be able to claim GST credits as a result. Our GST property decision tool might be able to provide you with some further insight into the matter.

 

If the business was sold as a going concern, then the transaction essentially becomes GST-free.

 

In terms of depreciation, you may be able to claim some assets if they are under the relevant instant asset write-off threshold. However if the assets are not under the thresholds, they must be placed into the small business pool.

 

As we can only provide general information on this forum, you can write to our GST area at GSTmail@ato.gov.au for a more detailed response.

 

We hope this helps,

 

@NelsonS

 

 

1 REPLY 1

Most helpful response

ATO Certified Response

Former Community Support

Replies 0

Hi @Max123,

 

Welcome to our Community!

 

If you have not paid GST on the purchase of the property or business, then you will not be able to claim GST credits as a result. Our GST property decision tool might be able to provide you with some further insight into the matter.

 

If the business was sold as a going concern, then the transaction essentially becomes GST-free.

 

In terms of depreciation, you may be able to claim some assets if they are under the relevant instant asset write-off threshold. However if the assets are not under the thresholds, they must be placed into the small business pool.

 

As we can only provide general information on this forum, you can write to our GST area at GSTmail@ato.gov.au for a more detailed response.

 

We hope this helps,

 

@NelsonS