We often get asked if there is a GST component in a Sale and Purchase Agreement for a rental residential property, or if GST needs to be claimed on the purchase of something for the property.
The answer is no to both questions. Why? Residential rent is viewed as a "GST exempt supply" of services. Exempt supplies are goods and services which are not subject to GST and not included in your GST return.
IRD give these guidelines:
For more info, see this page at the IRD website, or contact us.
Accounting for your rental residential investment property; specialised property tax advice. Buy me a coffee!