{"id":514,"date":"2021-06-28T23:37:02","date_gmt":"2021-06-28T23:37:02","guid":{"rendered":"http:\/\/www.trakaccountants.com.au\/blog\/?p=514"},"modified":"2021-07-19T05:38:08","modified_gmt":"2021-07-19T05:38:08","slug":"are-you-entitled-to-claim-the-gst-credits-on-the-deposit-paid","status":"publish","type":"post","link":"https:\/\/www.trakaccountants.com.au\/blog\/are-you-entitled-to-claim-the-gst-credits-on-the-deposit-paid\/","title":{"rendered":"Are you entitled to claim the GST credits on the deposit paid?"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Question<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">We have a client whom has paid a deposit for a commercial property in the December period totaling $30,500.00. We do not currently have a tax invoice for the payments (however we can try request one) and the property will settle in approximately three months. Are we entitled to claim the GST credits on the deposit paid?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Answer<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">For GST purposes it is generally accepted that a supply of real property (eg, land) occurs at settlement rather than when the contract is signed. Refer to paragraph 25 of&nbsp;<a href=\"http:\/\/law.ato.gov.au\/atolaw\/view.htm?locid=%27GST\/GSTR200028\/NAT\/ATO%27&amp;PiT=99991231235958\" target=\"_blank\" rel=\"noreferrer noopener\">GSTR 2000\/28<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Under a standard sale of land contract the deposit is held for security purposes and does not become consideration for a supply until either settlement occurs (ie, it is applied against the purchase price) or the deposit is forfeited (refer section 99-10 GST Act).&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This means that the GST credits should generally be claimed in the GST period in which settlement occurs rather than being based on contract date for GST purposes.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>We have a client whom has paid a deposit for a commercial property in the December period totaling $30,500.00. We do not currently have a tax invoice for the payments (however we can try request one) and the property will settle in approximately three months. Are we entitled to claim the GST credits on the deposit paid?<\/p>\n","protected":false},"author":2,"featured_media":515,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"cybocfi_hide_featured_image":"yes","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[14,19,39],"tags":[56,59,57,58],"class_list":["post-514","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ato-compliance","category-property-investment","category-qas","tag-commercial-property","tag-gst","tag-payment","tag-tax-invoice"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Are you entitled to claim the GST credits on the deposit paid? - Tax Accountants Varsity Lakes &amp; Robina<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.trakaccountants.com.au\/blog\/are-you-entitled-to-claim-the-gst-credits-on-the-deposit-paid\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Are you entitled to claim the GST credits on the deposit paid? - Tax Accountants Varsity Lakes &amp; Robina\" \/>\n<meta property=\"og:description\" content=\"We have a client whom has paid a deposit for a commercial property in the December period totaling $30,500.00. We do not currently have a tax invoice for the payments (however we can try request one) and the property will settle in approximately three months. 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