Recorded Webinar: GST and Farmland: Ploughing through the Complexities in Practice

There are two specific provisions in the GST legislation that deal with the requirements for the supply of farmland to be GST-free. Whilst the content of those sections are relatively short and concise, the same cannot be said for the issues that can stem from their use. This session delves into the issues, including:

• What is the definition of farmland for GST purposes?
• When can the supply of farmland, including subdivided farmland and the leasing of farmland, be GST-free?
• What are the pros and cons of using the GST-free farmland provisions for:
  • the vendor
  • the purchaser
• How is the supply of farmland treated for GST purposes that include:
  • a main residence
  • a bed and breakfast enterprise in addition to the farming activities
  • a significant amount of land used for non farming activities
  • agistment activities
• The extent the vendor needs to substantiate the purchaser’s intention for a farming business to be conducted on the land, including:
  • whether there is a requirement to distinguish between an intended activity being a farming business or hobby farm
  • suggested documentation to maintain
• How can increasing or decreasing GST adjustments apply subsequent to the purchase of GST-free farmland?
• How does the use of the GST-free farmland provisions impact on:
  • the use of the margin scheme?
  • the GST-free going concern provisions if the supply includes both farmland and the farming enterprise?
• What are the GST consequences of cancelling the GST registration prior to the sale of farmland?
• Practical case studies