Rent and GST intersect in ways that surprise both landlords and tenants. The treatment depends on what is rented, to whom, and for what use.

Commercial property

Renting property for business use is a taxable service. A landlord whose total receipts cross the registration threshold must register and charge GST on commercial rent. Registered tenants can generally claim it as input credit — making it cash-neutral for many businesses.

Residential property

Renting a residence for personal living remains exempt. But a residential property rented to a registered business (for employee accommodation, for example) can attract tax under reverse charge in the tenant’s hands as per current provisions — a rule many businesses discover only in audit.

Practical points

  • Rent agreements should state whether GST applies and who bears it
  • Landlords near the threshold should monitor total receipts, not just rent
  • Tenants paying RCM must report it to claim the credit back

We advise both landlords and tenants on rent structures — tax planning or ask us directly.