Sars changes Vat ruling

The new ruling by the SA Revenue Service (Sars) meant that property owners would have had to pay Vat on residential properties. The Vat Act's definition redefined flats and houses that are not rented directly to tenants but to sub-landlords as "not supplying a dwelling". The change to this ruling is to be welcomed since the transfer of property involves transfer duty and it could never have been the intention of Sars to double-tax such a transaction.

Link to ruling 386