Goods and Services Tax and Real Property Transactions

Abstract

The GST legislation will operate across the full spectrum of real property transactions. The legislation is complex in its application and gives rise to a myriad of issues requiring clarification. The core aim of this paper is to identify and discuss the significant issues for participants in the real property sector. In particular, it focuses on issues associated with sales and leases of commercial and residential premises and specific issues for the construction and property development industry. The transitional rules regarding supplies of real property are also considered. Throughout the paper, references are made to the decided case law under the New Zealand GST regime to illustrate potential avenues of interpretation.