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Value-Added Tax Act, 1991 (Act No. 89 of 1991)

Part II - Value-Added Tax

18B. Temporary letting of residential fixed property

 

(1) For the purposes of this section ‘developer’ means a vendor who continuously or regularly constructs, extends or substantially improves fixed property consisting of any dwelling or continuously or regularly constructs, extends or substantially improves parts of that fixed property for the purpose of disposing of that fixed property after the construction, extension or improvement.

 

(2) Notwithstanding the provisions of section 18(1), where goods being fixed property consisting of any dwelling—
(a) is developed by a vendor who is a developer wholly for the purpose of making taxable supplies or is held or applied for that purpose; and
(b) is subsequently temporarily applied by that vendor for supplying accommodation in a dwelling under an agreement for the letting and hiring thereof,

the supply of such fixed property shall, subject to subsection (3), be deemed not to be a taxable supply in the course or furtherance of that vendor’s enterprise.

 

(3) The fixed property contemplated in subsection (2) shall be deemed to have been supplied by that vendor by way of a taxable supply for a consideration as contemplated in section 10(7) in the course or furtherance of that vendor's enterprise at the earlier of—
(a) a period of 36 months after the conclusion of the agreement contemplated in subsection (2)(b); or
(b) the date that the vendor applies that fixed property permanently for a 5 purpose other than that of making taxable supplies.

 

(4) [Subsection (4) has been deleted by the Taxation Laws Amendment Act, 2013 (Act No.31 of 2013) Government Gazette 37158 dated 12 December 2013.]