Selling a property which is subject to GST?

In a recent case, an auction contract relating to the sale of a shop was marked so that the sale was a taxable supply. There was nothing in the contract to say that the auction price would have 10% added to it for GST.


The highest bidder bought the property at auction for $2 million. He contended that the $2 million included the GST. The vendor however expected that GST would be added to the auction price. The matter was contested in court and the court found for the buyer.


When selling or purchasing a commercial property it''s important to seek advice from both your solicitor and accountant.