03 Mar 2016
By Andrew Goldschmidt
The sale of immovable property, and whether VAT is levied or Transfer Duty

The sale of immovable property, and whether VAT is levied or Transfer Duty

Value Added Tax ("VAT") is a tax that is levied in terms of the Value-Added Tax Act, 1991 (Act No. 89 of 1991) ("the VAT Act") on the value that is added by each vendor in the production chain of goods and is imposed each time a taxable supply of goods or services takes place. Each vendor is required to account to SARS for the VAT on the value which the vendor added to the good. While a VAT vendor is required to account to SARS for "output tax" on any taxable supplies made by the vendor, the VAT vendor is entitled to…
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09 Jun 2015
By Ashersons Attorneys

Selling a business with Goodwill: Beware this Implied Prohibition

When you sell a business including its “goodwill”, you will likely be prevented from opening up in competition with your old business by a “restraint of trade clause” in the sale agreement. Your 5 year restraint period lapses – what next? Restraint clauses have to be reasonable in duration, so somewhere along the line your restraint period will lapse.  And when that happens, you may think that you are now completely free to set up shop again. (more…)
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