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Ask a lawyer – Can my landlord add VAT to the rent?

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Q

Hi, is a residential landlord ever legally allowed to charge VAT on rent? – Simon

A

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 david@hometimes.co.za and we’ll be sure to assist you 


Who is Marlon Shevelew?

Marlon Shevelew, director of Marlon Shevelew and Associates.

Marlon Shevelew, director of Marlon Shevelew and Associates.

Marlon Shevelew is the director of Marlon Shevelew and Associates Inc. a law firm specialising in rental property, contractual, consumer and company law.

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david.steynberg@gmail.com

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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