Property agencies and organisations have expressed relief at SA Revenue
Service's admission that its new ruling, ruling 386, was a mistake on its
part and will be re-worded. The ruling required that property owners pay VAT
on residential properties.
SARS has admitted that the VAT Act's definition precludes owners of
"dwellings" from paying tax on them, that the ruling applies to
non-residential property only (i.e. properties not specifically intended for
residential purposes), and that ruling 386 would be re-worded to comply with
the VAT Act definition.
Ian Slot, chairman of Seeff's National Committee, welcomed SARS
clarification of the matter. According to Slot, "given that the purchase of
residential property involves the payment of transfer duty, it could
obviously never have been SARS's intention to double-tax these transactions.
We are pleased that the receiver has moved quickly to correct this
oversight."
11-Aug-03
Publisher: Cape Business News
Source: Cape Business News
Correction of erroneous VAT ruling welcomed.
Posted On Monday, 11 August 2003 02:00 Published by eProperty News
Property agencies and organisations have expressed relief at SA Revenue Service's admission that its new ruling, ruling 386, was a mistake on its part and will be re-worded. The ruling required that property owners pay VAT on residential properties.
Latest from eProperty News
- Love and property: a homebuying guide for couples
- From Civic Landmark to Collaborative Hub: A New Era for Muizenberg’s Post Office
- Growthpoint breaks ground on Tecoma Park, Cornubia, advancing its local logistics strategy
- Rosebank Mall adds Livo to its lifestyle line-up
- 166 sectional title units in the iconic Parktonian Hotel, located in the heart of Braamfontein, Johannesburg
eProperty News is a leading online commercial property marketplace serving the Southern African Investment, Office, Retail and Industrial property and allied sectors.