Value-added tax on new residential properties: A comparative study to establish possible alternatives
regarding developers registered for VAT purposes
This article reports on a study on the value-added tax (VAT) levied on new residential properties sold to individuals by developers registered for VAT purposes. The objective of the research was to evaluate the current VAT provisions applicable to new residential properties in South Africa by measuring them against the principles of taxation, and by comparing the results with those obtained for the United Kingdom, Canada and Australia. Similarities and differences are established and evaluated. It is recommended that the supply of new residential properties in South Africa be zero rated.
Australia – GST,Canada – GST / HST, Developers registered for VAT Goods and services tax (GST) Harmonious sales tax (HST), New residential properties (housing),Principles of taxation South Africa – VAT , United Kingdom – VAT Value-added tax (VAT)
Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.