VAT hike and body corporate levies explained | Fin24
  • Covid-19 Money Hub

    The hub will help answer your business and money questions during the coronavirus crisis.

  • South African Airways

    A draft rescue plan calls for the injection of a further R4.6 billion int the struggling flag carrier.

  • Facebook

    Employees criticise Mark Zuckerberg’s inaction over US President Donald Trump's comments.


VAT hike and body corporate levies explained

May 02 2018 18:50

Cape Town - The recent change in the VAT rate from 14% to 15%, prompted a revisit of the issue around VAT with regards to levies in body corporates, share-block companies and home owners or property owners’ associations in South Africa.

According to Martin Bester, managing director of Intersect Sectional Title Services, a subsidiary of the Spire Property Group, levy income for body corporates, share-block companies or home owners or property owners associations (except those created for managing time-share schemes) is exempt from VAT.

This is provided such schemes supply services to their members and the costs for these services are paid from levy fund contributions received from members.

However, such schemes may apply to the SA Revenue Service (SARS) for voluntary registration as VAT vendors.

“This would typically apply to schemes of a mixed-use, commercial, industrial and or retail nature. Very few residential schemes would warrant voluntary VAT registration,” explains Bester.

“Intersect manages several VAT registered schemes, including industrial business parks, commercial office parks, mixed-use high-rise developments and sectional title registered hotels.”

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

property  |  money  |  vat increase


Company Snapshot

Voting Booth

How has Covid-19 impacted your financial position?

Previous results · Suggest a vote