VAT and agents commission on sale of primary residence
We intend selling our primary residence through a registered estate agent and buying elsewhere. There will be no CGT applicable. We have not been involved in buying and selling a property for 30 years and would like to know the following:
Does this transaction attract VAT? and if so, who is liable to pay - the buyer, the agent or the seller? (We are not VAT registered).
On what amount is the VAT calculated?- before or after agents commission has been added.
What is the accepted percentage for commission?
Can the selling price of a house be calculated as follows: Nett amount in our pockets + VAT + agents commission?
Transaction WILL be subject to CGT, however, there may not be any liability after deducting primary residence exclusion @ R2 million. Proceeds less base cost = CGT profit/loss.
Will not be subject to VAT as seller and buyer are not registered VAT vendors.
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