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GST and Accommodation: Commercial vs Residential, Input Tax Deduction, Zero-Rated Land Sale

  • GST applies to supply of accommodation
  • Commercial dwelling, residential establishment, domestic goods and services, input tax deduction, zero-rated for sale of land
  • Legislative references to Goods and Services Tax Act 1985
  • Company A purchases land, demolishes existing structure, constructs building
  • Building will be leased to Company B for operation and management
  • Mix of short-term and longer-term occupants in the Building
  • Weekly charges include accommodation, power, heating, Wi-Fi, water, communal facilities
  • Additional services charged separately
  • Main issues: classification of Building, concessionary rate, input tax deduction, zero-rating of supply
  • TCO decision: Building is commercial dwelling, concessionary rate applies, input tax deductible, zero-rating for sale to third party


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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