Who is responsible for determining if GST applies to a property?

The responsibility for determining if GST (Goods and Services Tax) applies to a property falls to the property seller. In real estate transactions, the seller is typically in the best position to know whether the sale of the property is subject to GST because they are aware of the nature of the property and its use.

The seller must consider factors such as whether the property is part of a commercial venture, which could make it subject to GST, or whether it falls under a specific exemption, like a residential property sold by an individual who is not a GST registrant. The seller is also responsible for notifying the buyer about the applicable tax status of the property during the transaction.

On the other hand, while buyers can seek advice and clarification, their primary role is to assess the property and make decisions based on the information provided by the seller. An appointed tax advisor can provide professional guidance, but the ultimate decision regarding GST applicability is not theirs to make—it's still a determination that relies primarily on the seller's disclosure. The government does set the regulations regarding GST, but they do not assess individual property transactions directly.

Thus, it’s the seller’s responsibility to ensure that the terms of the sale, including any tax implications like GST, are communicated effectively to the buyer