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Sectional title corner – Why has VAT been added to my levy?

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Q

I recently purchased an apartment in a sectional title complex in Cape Town. In addition to this apartment, I also own one in Johannesburg and one in Ballito, KwaZulu-Natal. I have not been charged VAT on my levies for the Joburg or Ballito apartments, but notice now that VAT is added to my levies for the Cape Town apartment. What is the legal position on VAT related to sectional title levies? – Arron

A

Hi Arron, it is not a mandatory requirement for a body corporate to register for VAT, but some bodies corporate (not many) opt to voluntarily register for VAT. We do not suggest to any of our complexes that they do that.

A body corporate can voluntarily register for VAT, but this would only be advantageous where the scheme is commercial of nature and the owners could claim input VAT.


Got a burning question? Email david@hometimes.co.za and we’ll be sure to assist you


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Who is Karien Coetzee?

Karien Coetzee, national property management consultant at Trafalgar.

Karien Coetzee, national property management consultant at Trafalgar.

Karien Coetzee is the national property management consultant at property management company, Trafalgar. She holds qualifications in sectional title schemes management and homeowners association management.

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David A Steynberg, managing editor and director of HomeTimes, has more than 10 years of experience as both a journalist and editor, having headed up Business Day’s HomeFront supplement, SAPOA’s range of four printed titles, digimags Asset in Africa and the South African Planning Institute’s official title, Planning Africa, as well as B2B titles, Building Africa and Water, Sewage & Effluent magazines. He began his career at Farmer’s Weekly magazine before moving on to People Magazine where he was awarded two Excellence Awards for Best Real Life feature as well as Writer of the Year runner-up. He is also a past fellow of the International Women’s Media Foundation.

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1 COMMENT
  • Nic 28th January 2017

    Shouldn’t I be refunded my levy portion per PQ when I sell my unit as it formed part of the profit generated in the books or refunded some portion from somewhere?

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