Transfer duty or VAT?

By LB Vorster

Whenever immovable property is being transferred from A to B (irrespective of whether the parties are individuals or legal entities), the transaction will be subject to taxation by SARS, either in the form of transfer duty or value added tax (VAT).

1. At what rates are transfer duty and VAT calculated?

1.1. The former distinction between individual purchasers and legal entities as far as the transfer duty payable by a purchaser is concerned, no longer exists and all purchasers are subject to the same rates. If the purchase price is R1 000 000 (one million rand) or less, no transfer duty is payable.

1.2. From R1 000 001 (one million and one rand) upwards, the transfer duty is calculated as follows:

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