TRANSFER COSTS AND VALUE ADDED TAX

VALUE ADDED TAX (VAT) AND TRANSFER DUTY

If the seller is registered for VAT, the sale of immovable property is subject to VAT. The current rate is 14 %. If the buyer is also a VAT registered vendor, he/she can claim the VAT back as a VAT input.

If the seller is not a VAT registered vendor, the sale is subject to transfer duty, payable by the buyer. If the buyer is a VAT registered vendor, the transfer duty may be claimed back as a deemed VAT input.

If the immovable property is registered in the name of a company or a closed corporation, and the company or closed corporation is sold, no transfer duty is payable unless the immovable assets comprises of more than 50 % residential property.

TRANSFER COST

Transfer cost will consist of several components

a) Transfer duty or VAT that may be claimed back if the buyer is VAT registered.

b) Conveyancer fee

c) Post and petties

d) VAT on conveyancer fees

e) Deeds office fees

f) Bond registration fees if applicable.