Hi, is a residential landlord ever legally allowed to charge VAT on rent? – Simon
Hi Simon, no. A landlord may not charge VAT in respect of residential premises, even if the landlord is a registered VAT vendor.
In terms of section 12(c) of the Value Added Tax Act, 89 of 1991, the supply of any dwelling under an agreement for the letting and hiring thereof is exempt from VAT.
“Dwelling” is defined in the act as any building, premises, structure, or any other place, or any part thereof, used predominantly as a place of residence or abode of any natural person or which is intended for use predominantly as a place of residence or abode of any natural person, including fixtures and fittings belonging thereto and enjoyed therewith.
Got a burning question? Email email@example.com and we’ll be sure to assist you
Who is Marlon Shevelew?
Marlon Shevelew is the director of Marlon Shevelew and Associates Inc. a law firm specialising in rental property, contractual, consumer and company law. The firm is the recipient of more than 45 international property law awards. Marlon is current author of PayProp’s rental documentation and preferred rental property attorney to the Institute of Estate Agents South Africa (IEASA), the Rental Housing Tribunal Western Cape and presenter of the Advanced Residential Property Law Seminar endorsed by the University of Cape Town. Marlon has featured on Cape Talk 567 and Property Matters on DStv, contributes as a guest expert to several property publications and was invited by Juta to write a book on rental property law, by LexisNexis Butterworths to edit its forms and precedents on rental property law and, on no less than three occasions, was invited by the Law Society of South Africa to lecture and train candidate attorneys and attorneys on rental property law. Marlon also created the unique Rental Retainer Club, RentDoc and LevyDoc which offers clients affordable legal fees for rental property and sectional title related matters. Marlon is contactable on firstname.lastname@example.org anytime for more information on these services.