If you have more than one assessment approved before the closing date, you must select one before the due date. Even if the sale has been made, no written agreement is required between the seller and the buyer: this clause will probably not comply with the requirements of a written agreement, since the buyer does not know whether the seller has actually applied the margin system to the sale. John would therefore have to prove in writing, before the sale was concluded, that the margin regime applied to lots 1 to 50. You can only apply the Margin scheme if the sale is taxable. You inherited the property from a person who was unable to use the margin system If the contract of sale was concluded on or after 29 June 2005, the buyer and seller must agree in writing to apply the margin system. The agreement to use the margin system must be concluded before the conclusion of the sale. GSTR 2006/8, paragraph 58, allows any reasonable method of allocating the underlying property value to be used to calculate the margin. The seller/seller is not required to issue a tax invoice if a written agreement on the application of the margin system is indicated in the sales contract. The Margin scheme is an alternative way to develop the GST you have to pay if you sell a property.
Under the Margin scheme, the amount of GST to be paid when selling real estate is equal to 116 of the margin of your sale. For real estate developers, the GST, which must be paid when selling real estate, can weigh heavily on profits.. . . .