Quick answer: GST treatment can materially change the cash required at settlement. A qualifying sale of a going concern can be GST-free where statutory conditions are met, while other commercial sales may require GST funding and later input-tax-credit recovery. Confirm tax treatment with your accountant or solicitor before finalising finance.
Questions borrowers, investors and developers commonly ask
- The leased warehouse is sold as a going concern — do I still need to fund GST?
- What if the property is vacant and GST is added to the price?
Tax treatment changes the settlement cash-flow
If GST is payable upfront, the buyer may need additional short-term liquidity even if an input tax credit is expected later.
Do not let the lender or agent give tax advice
The contract wording, registration status and going-concern requirements are legal and tax matters. Get written advice before the finance amount is locked.
Related guides
General information only. Commercial-property and development lending criteria vary by lender, transaction, security and market conditions. This is not legal, tax or investment advice.
Frequently asked questions
The leased warehouse is sold as a going concern — do I still need to fund GST?
GST treatment can materially change the cash required at settlement. A qualifying sale of a going concern can be GST-free where statutory conditions are met, while other commercial sales may require GST funding and later input-tax-credit recovery. Confirm tax treatment with your accountant or solicitor before finalising finance.
What if the property is vacant and GST is added to the price?
If GST is payable upfront, the buyer may need additional short-term liquidity even if an input tax credit is expected later.
Will every lender treat this the same way?
No. Commercial and development lending policy varies materially by lender and transaction.
Should I apply before the structure is tested?
For material or unusual transactions, test lender fit and the funding structure before creating formal applications.
Sources and verification
Need help matching this to a business-finance option?
GPS Finance can review the funding purpose, conduct, documents and lender fit before you make a formal enquiry.
