Vat and transfer duty

Reshika Maharaj addresses some tax issues in property transactions - of which the interrelationship between Value Added Tax (Vat) and transfer duty that is payable on the transfer of immovable property are the most perplexing. In his article he seeks to address some of the following issues by way of examples that arise with regard to these transactions, as encountered in general practice:

• When will property transactions be subject to Vat?
• What are the transfer duty implications where a seller and purchaser are registered Vat vendors?
• What are the transfer duty implications where the purchaser is a Vat vendor but not the seller?
• What are the consequences when property acquired as a going concern is used for both commercial and residential purposes?