One of the requirements when purchasing immovable property in South Africa is the registration for income tax. It is often necessary that the company purchasing immovable property needs to be registered for Value Added Tax (VAT). This is either necessary because the seller is VAT registered and the property is part of a running concern (e.g Guesthouse) or because the purchaser wants to start a business the aquired property. In the case seller and purchaser are VAT registered a ZERO-VAT transaction can be applied for, which prevents the purchaser from paying the VAT over to the seller. If transfer duty is payable, such transfer duty can be claimed back if the purchaser is VAT registered. If VAT is payable no transfer duty needs to be paid.
We offer the registration for income tax as well as VAT. In property transaction related VAT applications we can obtain such VAT number within 48 hours after having received all supporting documents. We also offer shelf companies with a registered VAT number. View our shelf companies list to access all our VAT registered companies available.