GST Output Tax: Selling or renting assets to recover debts

Key requirements

When an asset owner is GST-registered, a third party selling or renting its asset to satisfy debt must account for the taxable proceeds regardless of the third party’s registration. Submit the prescribed electronic statement with owner, third-party, transaction and GST details. For sales, remit within 21 days of the sale agreement; for rent, within 21 days after the owner’s accounting-period end. Provide the required statement copies, and rental invoices identify the owner’s GST number and the representative capacity. The owner must not duplicate those supplies in its return. Expenses contractually supplied to the owner may be deducted in the statement using owner-addressed invoices; third-party contractual expenses are claimed by that third party only through its own return and normal conditions. Separate expenses according to the actual contract rather than whose debt account bears the cost.