Real Estate

Should you pay GST on your rental?

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If you are being charged GST on your rental, you might like to consider whether or not you need to pay GST in the first place?

To determine whether you should pay GST on your rental invoice, you must first find out whether the person or entity invoicing you is GST registered.

The easiest way to find out is to check the invoice for a GST registration number. If one exists, the second step is to check with the Internal Revenue Commission whether that number is valid.  If it is valid then the entity invoicing you is correctly charging you and you are liable to pay GST on your rental.

If the GST registration number does not appear on the invoice, you have a right to request to the landlord or managing agent to supply you their GST registration number.

If they’re unable to provide you a GST registration number because they don’t have one, then this should alert you that you that they should not be charging you GST on the rental.  You will need to raise this issue direct with the landlord or managing agent and request that the GST component paid in respect of all invoices charged with GST be refunded to you.

With the current rentals shooting through the roof, the last thing tenants want is to be charged additional costs that they are not liable to pay for.

Please take note that this is for informational purposes and if you have a specific issue with respect to your own circumstances, we suggest that you speak to a lawyer or an accountant.

For more information on GST, we suggest that you check the IRC website here