- Inland Revenue issued a draft QWBA on GST treatment of subdivision projects
- Understanding taxable activity is important for GST treatment
- Examples provided in the draft QWBA are clear, but not for cases on the margin
- Taxpayer must prove change of intention during development
- Seek guidance to understand GST and income tax implications before transactions
- Factors to consider for determining taxable activity in subdivision projects
- Larger scale projects are more likely to be considered taxable activities
- Construction and sale of a single house within a subdivision project is generally not a taxable activity.
Source: taxathand.com
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.
