FAQ Blog Calculators Students Logbook Contact
Do your Tax with TaxTim and WIN R10,000  More info   T&C's apply


Property Transfer Duty for Trusts

Posted 31 March 2014

If a trust is buying a residential property does it pay the same transfer duty as individuals? Further, if the trust was registered for VAT would that change the answer to the previous question in any way?

TaxTim TaxTim says:
1 April 2014 at 8:17

Trusts pay Transfer Duties at the same rates as individuals for which the first R600 000 is duty free. If the trust is registered for VAT then the payment of VAT will happen instead of the Transfer Duties.

TaxTim TaxTim says:
2 April 2014 at 18:41

As the purchaser being a VAT vendor you are not going to pay VAT due to the seller not being a vendor. However what purpose are you purchasing the residential property for?

Dan says:
2 April 2014 at 20:08

We will be renovating the property and some of the invoices will include VAT. Thereafter, we will be renting out the property and I presume we will then need to charge VAT for the rental??

TaxTim TaxTim says:
4 April 2014 at 10:00

You cannot charge VAT on residential rental, only commercial. If you are using the property for commercial rental then you are able to actually claim a VAT input for the cost.

This entry was posted in Tax Q&A and tagged , , , , , . Bookmark the permalink.




Submit your tax return right here!
Get started

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund
Answer simple questions about your incomes and expenses. TaxTim does the rest. Just click click, submit.

Make tax easy

Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →

Get SARS Tax Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.