Latest News [index] GST Addendum
New GST zero-rating rules for certain land transactions between registered parties took effect on April 1. A GST Addendum to the REINZ standard Eighth Edition Agreement for Sale & Purchase addressing these new rules is now in circulation.
The Addendum provides for two new zero-rating clauses in place of the existing clause together with a Schedule of GST information that needs to be completed by the purchaser and the vendor.
However, it is important to understand that under the new GST zero-rating rules the criteria to satisfy the test for zero-rating is tested at time of supply and again at settlement. This is a significant departure from the previous rules and means that it is essential that any changes that could affect the transaction are promptly reported to the relevant parties.
For more information on the new zero-rating rules or for advice regarding an agreement for sale and purchase please contact a member of the Ayres Legal team. Also see the article on this site "New GST rules applying to the sale of land".