PUB00383: GST – How do the compulsory zero-rating of land rules apply to transactions involving commercial leases?

Section 11(8D) of the Goods and Services Tax Act 1985 contains the compulsory zero-rating of land rules for commercial leases.  This draft QWBA explains how s 11(8D) operates.  It covers various factual situations, including:

  • the exclusion for rents and lump sum payments of 25% or less of the term consideration;
  • stand-alone lease assignments;
  • lease assignments in the context of business asset sales;
  • lease procurement services in the context of business asset sales;
  • lease procurement services where an existing lease is currently continuing on an implied term; and
  • lease procurement services where an existing lease is to be cancelled.

Comment deadline: 25 May 2021

PUB00383 (PDF | 12 pages | 335 KB)