Do I have to pay GST when I sell my rental property?

Generally, GST does not apply to the sale of a residential rental property held by a private individual, because renting out a dwelling for residential purposes is an exempt supply under the Goods and Services Tax Act 1985, and if you are not registered for GST in respect of this activity, the sale would not attract GST. If, however, you are GST-registered because the property was used, for example, for short-term or commercial accommodation, or if it is sold as part of a taxable activity such as property trading or development, GST considerations become more complex, and the zero-rating rules for transactions between GST-registered persons involving land can apply. The bright-line test under the Income Tax Act 2007 is a separate matter, dealing with income tax on the sale of residential land within a specified period. Get advice specific to your situation before you sign a sale agreement.