Developers hit with GST credit delays

The ATO has recently issued information to help property developers claim GST remitted on their behalf to the ATO by purchasers.
Since 1st July 2018 all purchasers of new residential property have been required to retain the GST portion of the purchase price and remit it to the ATO, for the ATO to hold as a credit for the developer. This allows the ATO to collect the GST early, and helps guard against rogue developers who do not pay their tax.
Unfortunately, the process involves a series of forms; a complicated process that has resulted in the credit for GST paid not linking back to the developer’s ABN. This has left developers with a GST bill and no credit.
The ATO has reminded developers and conveyancing parties to ensure that all information is provided so that the process can operate effectively, but with such a convoluted series of forms, developers might do well to also keep their fingers crossed!!

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