In partnership with
Loading...

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

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest. 24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

property  |  money  |  vat increase
NEXT ON FIN24X

 
 
 
 

Company Snapshot

#SAVINGSMONTH

Five of SA's top financial brains, including SARB governor Lesetja Kganyago share their best savings habits.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Are you prepared for the latest round of Eskom’s load shedding??

Previous results · Suggest a vote

Loading...