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.
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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.