MWL FINANCIAL GROUP
SECTION – TRADESMEN
SUBJECT – Going Concern
Hi I'm Barbara Keating, Accountant and small business specialist at MWL Financial Group.
Are you looking to sell or buy a business? Are you aware of the GST implications?
The sale of a business will normally be a taxable supply, and therefore attract GST of 10%. What this means is that the asking price has just increased by 10%, and this may have a big impact when trying to sell your business or buy a business.
The GST act allows for the sale of a business to be GST free as long as it meets the “going concern” criteria. For a sale of business to be a “going concern”, the sale needs to include everything that is necessary for the business to be continued, and that the business is carried on by the seller until the day of sale. In addition, the purchaser needs to be registered for GST and the agreement that the sale is going concern needs to be in writing.
As you can see there may be great benefits available to you when buying or selling your business.
For more information contact us at firstname.lastname@example.org and either me Barbara Keating or one of our experts will be more than happy to help.