If the seller of immovable property is a developer and a registered VAT vendor (or in the business of buying and selling property and is registered for VAT), then VAT is charged on (and included in) the purchase price of the property and Transfer Duty is not payable.
Transfer Duty is a government tax, which is charged when a property is transferred from one person or entity to another.
In a nutshell, VAT is a government tax, charged by a vendor who is registered for VAT, on the supply of goods & services, which is payable to the South African Revenue Services (SARS) in order for the government to generate revenue.
This Information supplied by the South African Revenue Services and Compiled by Bizland.
A new Rates Policy is to be implemented nationally under the Local Government Municipal Property Rates Act 2004. It is said to role out on the 1 July 2007 in the Western Cape with Johannesburg following in July 2008 and the other provinces following there on.
