Sales between property owners who are GST registered will be zero rated where the purchaser will be engaging in an activity which will be subject to GST, as for example commercial leasing or where the property will be used as a business premises of the new owner. The level of occupancy of the property as at the date of the sale will no longer be relevant and, as such, the property may be brought and sold with vacant possession.
The GST net has been expanded by making subject to GST certain “commercial dwellings” which were previously exempt from GST such as homestays, farmstays, serviced apartments and bed and breakfast providers.