On 31 October 2018, the ATO uploaded a post addressed to vendors of property, on which GST is to be withheld and remitted to the ATO, as a credit against the eventual assessed GST.
The ATO reminds vendors, that the start of the process, is with the Vendor of the land, who has to supply a notice (under s14-255 of the TAA). The vendor has to get its own details correct. Then the Purchaser must record those details correctly, in the forms they lodge with the ATO (when remitting the withheld amount).
This will avoid the Vendor experiencing delays in the processing of credits for the withheld amounts, when it lodges its BAS and becomes liable for the primary GST amount (if any).
Timely processing of credits will only occur when all of the steps below have been followed:
- You need to provide correct supplier details to the purchaser.
- The purchaser needs to enter the supplier details you provide into form one – GST property settlement withholding notification.
- The purchaser needs to pay the withholding amount and lodge form two – GST property settlement date confirmation.
- We will allocate a credit to your GST property credits account if this matches the details provided in form one.
- You then need to lodge your business activity statement (BAS) declaring the property transaction.
- We will process your BAS and credits are transferred to your activity statement account.
Once we have confirmed the correct supplier details, you will receive a confirmation email to the nominated email address on your integrated client account advising receipt of the credit.
CPD questions (answers available)
- Is the ATO finding that credits for the Vendor, for the GST amounts withheld from the purchase price, are being delayed due to the ATO getting incorrect vendor information?
- Who has the first responsibility for correct Vendor information?
- Who else has responsibility?
- How many forms does the Purchaser have to lodge with the ATO?
- Will the Vendor be notified when the ‘credit’ has hit their account?