Fact Sheet: Considerations for Unit Title Bodies Corporate Registering for GST

• This fact sheet provides guidance for unit title bodies corporate (UTBCs) considering registering for GST.
• A UTBC is not required to register for GST unless they carry on a taxable activity and make taxable supplies of over $60,000 in a 12-month period.
• UTBCs can voluntarily register for GST, but they will need to pay GST on supplies they make and can claim GST on amounts paid to registered suppliers.
• There may be no point in registering for GST for UTBCs with owner-occupied residential apartments.
• Voluntarily registering for GST may be beneficial for UTBCs if their members are registered for GST and use their units for taxable activities.
• UTBCs considering voluntary registration need to consider the compliance costs and the special rule requiring them to pay GST on the value of money and investments they hold at the time of registration.
• Some UTBCs may consider registering for GST to claim back GST on significant repairs or maintenance, but the GST paid on levies and insurance payments may negate the benefits.
• A registered UTBC cannot voluntarily cease its registration for four years.

Source: taxtechnical.ird.govt.nz

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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