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Can SARS levy VAT on the transfer of a farm to an heir?

14 April 2015   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

Q: Please advise what the VAT implications would be in the following situation:

A farming property is awarded and transferred to an heir in terms of the will of the deceased. The deceased is not registered for VAT and neither is the beneficiary.

A: We assume that the deceased was not required to be registered under the Value-Added tax Act.  Section 53 of the Value-Added Tax Act would then not apply.  The mere fact that the value of the goods (the farming property) may exceed R1 million does not mean that the estate has to register as a vendor – see the proviso to section 23(1).  Based on the assumptions the transfer of the farm to the heir will have no value-added tax consequences.  The transaction should be exempt from transfer duty.

Disclaimer: Nothing in this query and answer should be construed as constituting tax advice or a tax opinion. An expert should be consulted for advice based on the facts and circumstances of each transaction/case. Even though great care has been taken to ensure the accuracy of the answer, SAIT do not accept any responsibility for consequences of decisions taken based on this query and answer. It remains your own responsibility to consult the relevant primary resources when taking a decision.


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.


The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.

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