- SARS updated its VAT guidance on zero-rating sales of enterprises sold as going concerns, effective July 17, 2026.
- To qualify, the sale must be an active income-generating business or property, and both buyer and seller must be VAT vendors.
- The sale agreement must clearly state the business is sold as a going concern, will continue earning income at transfer, includes the necessary assets, and is priced at 0% VAT.
- The seller must keep the required supporting documents within the prescribed deadlines, or SARS may رفض zero-rating and charge VAT, interest, and penalties.
- If VAT applies correctly to the sale, transfer duty generally does not apply.
Source: polity.org.za
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.
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