GST on Vehicle Sale

Question

 If two GST registered entities are involved in a vehicle transaction e.g. One buys from the other, should the sale and purchase be zero rated? Does the seller have the option to pay GST and the buyer to claim the GST?

Answer

 If both entities are registered for GST the transaction is not zero rated. The seller pays the GST and the buyer claims it back. Zero rating in this form applies to transactions involving land.