GST - Deposits a seller retains from cancelled land sale agreements

This question we’ve been asked explains the GST consequences when a land sale agreement is cancelled and the seller retains the deposit.  

It updates previous guidance from 2005. The answer remains that GST does not apply to the deposit but the reasoning has been expanded to consider matters that have arisen since the last statement was published that may have affected the answer. 

If you would like a copy of this in Word, contact us using the Feedback button below.