Page 28 - P6 Slide Taxation - Lecture Day 3 - VAT Part 3

24. SPECIAL RULES: FIXED PROPERTY

Def s 1 “fixed property”:

land + improvements, sectional title, share block co etc.

VAT vendor who supplies fixed property must account for VAT

output.

VAT vs Transfer Duty

• Firstly determine whether VAT must be charged (14% or 0%)

• If VAT (either at 14% or zero rate): no Transfer Duty

→ Section 9(15) of the Transfer Duty Act – KL3

• If no VAT: Transfer Duty applicable

• VAT is “stronger” than Transfer Duty

• Transfer Duty only payable on the transfer of immovable

property.

• Who pays Transfer Duty?