GST Input Tax: Selling or renting assets to recover debts

Key requirements

Where costs are contractually supplied to the registered asset owner, their GST can be deducted in the required debt-satisfaction statement using invoices addressed to that owner. Costs contracted by the creditor, financier or auctioneer belong instead to that third party and can only be claimed through its own GST return, subject to normal conditions. Choosing and instructing the supplier and being liable under the contract identify the third-party supply; offsetting costs from the owner’s account does not change that result. A registered owner’s sale or rent is accounted by the third party through the prescribed statement, with sales tax due within 21 days of the binding sale and rental tax within 21 days after the owner’s period end. Prevent duplicate reporting or claims by the owner.