South Africa Tax Agency Issues General Ruling Clarifying VAT on Dwellings Applied for Exempt Supplies

The South African Revenue Service May 21 issued Binding General Ruling No. 64, Issue No. 2, clarifying the VAT treatment of newly built residential dwellings that are temporarily applied for exempt supplies by developers. The ruling clarifies: 1) the definition of key terms; 2) that a developer who temporarily applies any dwellings for exempt supplies must make an output tax adjustment based on the adjusted cost of the fixed property; 3) that the adjustment’s time of supply is the date that the specified agreement came into effect; 4) that specified developers are required to make an output tax adjustment based ...