GST on Land Sale

James Murphy Tax


The client is getting old and wants to sell the land they own. It is approx. 30 acres on the edge of town.

They are not registered for GST, and no business has been carried on, on the land. Meaning not having any cows, etc., on the land.

They have owned the land for several decades.

Do they have to register for GST and sell the land with GST added to the sale price?

I believe they don’t have to register or charge GST because they aren’t in the business of land selling etc. i.e., not made in the course of the furtherance of an enterprise that he carries on (sec 9-5(b)).


As we may not have the full facts and circumstances, we will only give general advice.

While you may be correct, this requires further consideration, and we direct you to Miscellaneous Tax Ruling 2006/1.

Refer to paras 271-287 Examples of subdivisions which are enterprises.

Then to paras 288-305 examples of subdivisions that are not enterprises.

This will give you more guidance, but you could request a private ruling if you are still in any doubt.