- South Africa Tax Agency issued a ruling clarifying VAT on dwellings applied for exempt supplies
- Developers must make output tax adjustments based on adjusted cost or open market value
- Time of supply for adjustments is the date the agreement came into effect
- Supply of certain dwellings during a 12-month period will be considered taxable
- Claw-back deductions allowed for developers if temporary application for exempt supplies ceases within 12 months
- Ruling applies from May 21, 2024
Source: news.bloombergtax.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
