VAT sales

VAT versus transfer duty on a property sale

A property transaction is generally subject to either VAT or transfer duty, not both. The distinction can materially change the buyer’s cash estimate.

Last reviewed: 22 August 2026

The practical difference

Transfer duty is paid on many non-VAT property transfers. Where a sale is subject to VAT, transfer duty is generally not payable. Whether VAT applies depends on the seller, transaction and agreement; it is not something a buyer should guess.

Why buyers should care

For prices above the transfer-duty threshold, the difference can be substantial. A VAT sale still has transfer-attorney fees, VAT on legal services, deeds-office charges and, where applicable, bond-registration costs.

Confirm these points in writing

• Whether the seller is a VAT vendor for this transaction.
• Whether the advertised price includes VAT.
• Whether the offer records the correct tax treatment.
• Which attorney will confirm and administer the transfer.

Do not confuse property VAT with service VAT

Even if transfer duty is not payable, legal services normally carry VAT where applicable. The calculator therefore shows VAT on attorney fees separately.

Source: SARS transfer-duty information. General information only, not tax or legal advice.