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April 2018

Dear Client / Geagte Kliënt


Newsletter
 
 


VAT Increase / BTW Verhoging 


Almal van ons is nou deeglik bewus dat die BTW-koers in die laaste begroting verhoog is tot 15% tydens die Begrotingsrede van 2018. Die verhoging van die BTW-koers (die eerste sedert 1993) is van krag vanaf 1 April 2018 en dit het gelei tot 'n aantal vrae aangaande die BTW-implikasies van transaksies wat ‘n aanvang geneem het voor daardie datum. Een van hierdie vrae is hoe beïnvloed die verhoogde BTW-koers vaste eiendomsverkope wat reeds voor 1 April 2018 aan die gang was of in die proses onderhandeld was (dus voor 1 April 2018)?

This question stems specifically from the application of the time of supply rules regarding the sale of fixed property. If a VAT vendor (for example a property developer) has signed a sale agreement on 1 January 2018, but both the payment of the sales price and the transfer of the fixed property is effected on or after 1 April 2018, which VAT rate applies to the transaction – 14% or 15%?
 
Ooreenkomstig artikel 9(3)(d)(ii) en (iii) van die wet op BTW (Wet 89 van 1991) word lewering van vaste eiendom geag voorsien te wees op die vroeëre datum van die waarop registrasie van die oordrag van die vaste eiendom by die Aktekantoor geneem word of wanneer enige betaling ten opsigte van die teenprestasie vir sodanige aanbod deur die koper gemaak word.






The issue now at hand is where a VAT-registered property developer enters into a sale agreement with a purchaser on 1 January 2018 for the sale of a unit with a price being R10 million (inclusive of VAT). Both parties signed the agreement on 1 January 2018, construction commences before 1 April 2018, concludes thereafter and the resultant registration of the transfer of the property in the Deeds Office is effected after 1 April 2018. Payment is made on transfer date.
 
Ingevolge die konsep van tydperk van lewering, volg dit dat, indien ‘n aanboddatum na 1 April 2018, wat aanvaar word, effektief tot gevolg het dat die transaksie onderhewig is aan betaling van BTW van 15%. Die verkoper sal dus minder ontvang vir sy eiendom of in die alternatief sal die koper uiteindelik meer moet betaal vir die eiendom. 

Gelukkig is ‘n ander uitkoms vervat in artikel 67A(4) van die BTW-wet. Byna weggesteek aan die einde van die BTW-wet, is die afdeling waarna nie dikwels na gekyk word vir verligting nie, seker bloot omdat die BTW-koers sedert 1993 onveranderd op 14% gebly het.
 
In short, the section provides that, subject to certain conditions, the VAT rate that is effective on the date that a written sale agreement is entered into, will apply. The 14% VAT rate would apply to the supply of fixed property where, before the date on which an increase in the VAT rate becomes effective (i.e. 1 April 2018), a written agreement is concluded, and if all of the following apply:
  • The sale of fixed property consists of any residential dwelling (i.e. not a commercial property);
  • The price paid in respect of the sale or construction in question was determined and stated in the written agreement, as in force before the increase date, and that agreement was signed by the parties thereto before the increase date; and
  • The supply of such fixed property under the written agreement is deemed to take place on or after the increase date.
 Uit bogenoemde is dit duidelik dat spesifiek en slegs residensiële eiendomsontwikkelaars voordeel kan trek uit die toepassing van artikel 67A(4). Die verkoop van nie-residensiële eiendomme / kommersiële eiendomme kan dus onderhewig wees aan die 15% BTW-tarief indien die verskaffingstydperk op of na 1 April 2018 plaasvind. Partye wat by hierdie transaksies betrokke is, kan ten beste aangeraai word om hul verkoopsooreenkomste te hersien om te verseker dat daar voorsiening gemaak word vir die verhoogde BTW-koers en dat toepaslike meganismes in plek gestel word. 

Groete / Greetings,

Hennie & Eberhard


Bogemelde is grootliks gebasseer op ‘n artikel wat verskyn het op die Webblad Bizcommunity.com geplaas deur Leonard Willemse.
 


 
 
 
ArticleImage  
Water Restriction Clauses In Lease And Sale Agreements
It is no secret that the Western Cape is currently facing a water crisis. This crisis demands an open-minded approach to the way we deal with property when it comes to negotiating lease and sale agreements. This article serves as a short summary of relevant water restriction clauses to be included in these agreements. 
Read More
 
 
 
 
 
 
 
Eiendom in gesamentlike besit. Hoe om dispute te voorkom.  
ArticleImage
Om eiendom te koop kan ‘n goeie belegging wees. Dit is gewoonlik ook duur. Dit kan dus sinvol wees om die finansiële las te verdeel en die eiendom saam met ander te koop. Dit kan so eenvoudig wees soos getroude mense of mense in ‘n vaste lewensverhouding wat hul eerste woning gesamentlik koop. ‘n Groep vriende wat besluit om gesamentlik ‘n vakansiehuis te koop. Dalk twee sake ondernemings wat besluit om saam ‘n besigheidsperseel te koop om te deel. 

Wees maar net versigtig... 
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Do You Read Online Terms and Conditions?
We live in an age of online commerce. We buy and sell pretty much anything you can think of on the Internet, whilst contracting online for everything from an Uber ride to a plumber’s call out has become second nature. 

So we should all know just how important it is to take note of those annoying little tick boxes saying things like “I agree to the terms and conditions available here” (with of course a hyperlink under the “here” leading you to a list of terms and conditions as long as your arm).

An interesting case recently before the High Court illustrates.
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Protection of Personal Information Act  
ArticleImage
When will the enforcement provisions of the Protection of Personal Information Act (“POPI” or “POPIA”) come into effect? Latest indications are that the Information Regulator will announce final Regulations and a commencement date shortly, but there have been so many delays already that we perhaps shouldn’t be holding our breath on that one.

Three important things to note here...
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 Our Directors
             
       
    Hennie van Zyl
DIRECTOR
021 180 4551 / 083 250 9501
hvanzyl@vzk.co.za
      Eberhard Kruger
DIRECTOR
021 180 4552 / 082 789 1706
ekruger@vzk.co.za
      Cheryl-Anne Ehrenreich
DIRECTOR
021 180 4564 / 082 783 7242
cheryl@vzk.co.za
   
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DIRECTORS: H L VAN ZYL (B.PROC); E S KRUGER (B.COMM LL.B MPRE); C A EHRENREICH (BA.LL.B LL.M)
ASSOCIATES: S JANSE VAN RENSBURG (B.COM LL.B); LI CHANTLER(B COMM LLB); D VAN ZYL (LL.B LL.M);
M VAN DEN HEEVER (LL.B); A BARNARD (B.COM LL.B DIP.FINPLANNING).
PRACTICE MANAGER: F BRAVENBOER (NDIP FIS).
CONSULTANT: J A L VAN ZYL (B.JURIS LL.B); C I’ANSON-SPARKS Solicitor in England and Wales (LL.B(HONS), DIP LEGAL PRACTICE)