Sectional title corner – Why has VAT been added to my levy?
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
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.
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Who is Karien Coetzee?
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.