Date posted: 19/04/2021 2 min read

Submission on draft QWBA PUB00256

Chartered Accountants Australia and New Zealand recently provided feedback to Inland Revenue on draft QWBA PUB00256: When does s 5(23) of the Goods and Services Tax Act 1985 apply to shift GST liability to the purchaser or land.

Chartered Accountants Australia and New Zealand recently provided feedback to Inland Revenue on draft QWBA PUB00256: When does s 5(23) of the Goods and Services Tax Act 1985 apply to shift GST liability to the purchaser or land.

There is a provision in the Goods and Services Tax Act 1985 (s 5(23)) that may apply to shift GST liability to the purchaser of land if the supply has been incorrectly zero-rated.  This when finalised this QWBA will explain when s 5(23) will apply.

In summary, the draft QWBA concludes that both parties must have treated the sale as zero rated for the GST liability to shift to the purchaser. The draft QWBA sets out two scenarios when GST liability will not shift to the purchaser. Following our analysis CA ANZ reaches a slightly different conclusion and outlines our reasoning as part of our submission.

We recommend that the issue is referred to policy officials for further work

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