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Property Transfer Duty for Trusts

Posted 31 March 2014 under Tax Questions



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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?

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TaxTimTaxTim 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.


TaxTimTaxTim 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??


TaxTimTaxTim 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.


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