From the Horse’s Mouth: House Sales and the VAT Increase
We all know by now that the VAT rate increased from 14% to 15% on 1 April, but how does that affect your residential property sale/purchase? We are talking big money here – if for example you bought a house from a developer for R10m + VAT, that extra 1% adds R100,000 to your cost. Fortunately a little-known (until now) section of the VAT Act provides some relief to residential property buyers. This is what SARS has to say about it (slightly simplified) – Question – “Is there a rate specific rule which is applicable to me if I signed…