TRANSFER DUTY OR VAT |
A. SECURITY FOR VAT ON PROPERTY TRANSFERS |
Where a VAT registered vendor sells fixed property which is used in the course or furtherance of his enterprise to make taxable supplies, (be it of a capital nature or inventory), the transaction attracts VAT either at a standard rate or zero rate. The latter is usually applicable where a GOING CONCERN is sold.
With effect from 6 December 1999, any aplication for an exemption of Transfer Duty in terms of section 9(15) of the Transfer Duty Act, must be accompanied by:
 | The previous financial year end financial statements or |
| Where no financial statements have been drafted, the enclosed statement of assets and Lianbilities. |
B. QUICK REFERENCE TO TAX IMPLICATIONS ON SALES OF FIXED PROPERTY |
| SELLER | VAT | TRANSFER DUTY | PURCHASER | INPUT TAX CLAIM | TAX IMPLICATIONS FOR PURCHASER |
| Vendor | Yes | No | Vendor | Yes | bears no direct tax costs |
| Vendor | Yes | No | Non-Vendor | No | Bears cost of VAT |
| Non-Vendor | No | Yes | Vendor | Yes | Bears cost of transfer duty but has an advantage of input tax claim |
| Non-Vendr | No | Yes | Non-Vendor | No | Bears cost of transfer duty |
| *Vendor | Yes | Tax 14% | *Vendor | Yes | Bears cost of VAT on purchase price |
* Vendor (last row of table) - Vat payable if property isn't sold as a GOING concern