Concurrent use of land

Section 21E(1) of the Goods and Services Tax Act 1985

Section 21E of the GST Act provides a formula that must be used to apportion the taxable and non-taxable use of land in situations when it is used "concurrently". This provision is particularly relevant when a person rents out land (exempt use) or uses land for private purposes while simultaneously using it for making taxable supplies, such as taking steps to sell it.

The amendment clarifies the scope of the provision so that it applies only when the same area of land is simultaneously used for both taxable and non-taxable purposes, rather than when land is used for both taxable and non-taxable purposes, but that use either relates to different parts of the land or is not simultaneous.

Application date

The change applies from 1 April 2011.