The sale of a business or enterprise can be GST free if all the conditions are met. This is referred to as the going concern exemption.
The following conditions must be satisfied:
- the sale must be for consideration;
- the buyer must be registered or required to be registered for GST;
- both parties must have earlier agreed in writing that the sale is of going concern;
- the seller must carry on the business until the date of sale; and
- the seller must supply the buyer all the things necessary for the continued operation of the enterprise.
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