I have always believed that the VAT that you can claim as an input tax deduction on fixed property from a non vendor was limited to the amount of transfer duty paid.
I have however came across these 2 articles stipulating that this is no longer the case due to an amendment.
and perhaps more relevant
Has anyone actually experienced this in person and have successfully claimed the full tac fraction (14/114) on the purchase price and not just the transfer duty? If so under what heading in the return was it claimed and what supporting documents was provided to SARS in support of the input claim.
This could be quite relevant to me as I have a farming business registered for VAT and have bought to plots of land under the transfer duty threshold. In the "old Act" I would be limited to the transfer duty I paid in this case ZERO but with this amendment I could claim quite a substantial amount.