1. Why am I getting a letter to say that the income tax number is not correct?
The income tax number is checked against the ID number for an individual, or registration number for a juristic entity upon submission. This can also be caused by an individual not having an ID number or who has not yet applied for a new ID number. If you receive the invalid income tax number response, please check all of the above.
2. Who do I capture as the Seller for sale in execution transfers?
Capture the owner of the property as the Seller and in the full name (only 50 characters) field, indicate that the Sheriff was acting as an ‘agent’ in the transaction, e.g. ‘The Sheriff of the High Court of South Africa (Western Cape High Court, Cape Town)’. Sheriff’s commission should be included in Any other consideration.
3. How do I capture the Sellers information when they are deceased?
Capture the Seller information as if they are still alive. Capture either their income tax number or annual income when they were still alive, and in the full name (only 50 characters) field, enter ‘Estate late of…’
4. What should we capture as an annual income for individuals who do not work or are unemployed?
You can capture the spouse allowance, UIF grant or proof of income – affidavit or UIF. They will not be taxed twice on the income declared here.
5. The letter requesting supporting documents asks for a list of documents where applicable, what documents are referred to here?
Please refer to page 6-7 in the External Guide - Transfer Duty. The previous rules (prior to go-live) regarding valuations apply.
Please make sure to read the document as this could also be a request for a correction.
6. Corrections and supporting docs
As per the transfer duty guide: Once a request for correction has been submitted no action must be taken on the previous version, as it will be replaced by the new version.
Users should submit supporting documents before they do a correction. After they have done a correction, they should only submit supporting documents to requests received after the correction.
7. Which additional fields need to be captured for a VAT transaction, e.g. the Developer is a VAT vendor and hence, not liable for Transfer Duty?
In the list of Exemptions available, select Other and capture ‘Act 9(15)’ in the corresponding field on the form to indicate that VAT is payable.
The purpose of this exemption is to prevent the possible double taxation of a transaction. The payment of VAT will therefore take precedence over payment of Transfer Duty where the supplier is a VAT vendor.
|Note: The supply of an entire enterprise with all its assets (including any fixed property) as a ‘going concern’ may qualify as a zero-rated taxable supply if all the conditions in Section 11(1)(e) of the VAT Act are met.
8. Difference between Buyer/Seller paying VAT
Sometimes the supply of fixed property may be subject to Transfer Duty even if the Seller is a vendor. For example, the sale of the vendor’s private residence will usually not be for the furtherance of their enterprise and therefore will be subject to Transfer Duty.
When the Buyer and Seller are both VAT vendors, and property being sold is a going concern, then the Buyer and Seller can apply for a zero-rated (VAT) transaction.