Update: Cabinet Reshuffle
On 26 February 2018, President Cyril Ramaphosa announced his new Cabinet. The new Minister of Human Settlements is Ms Nomaindia Mfeketo – replacing Lindiwe Sisulu who has been appointed as Minister of International Relations and Cooperation.
- She is the former Deputy Minister of International Relations and Cooperation; and
- the former Deputy Speaker of the National Assembly of South Africa, serving from 2009- 2014;
- She was the mayor of Cape Town in South Africa from 1998-2000 and again from 2002 to 2006.
15% VAT – IMPACT ON YOUR CONTRACTS
All vendors must charge 15% VAT on all transactions with effect 1 April 2018.
Obviously until midnight on 31 March 2018, 14% VAT remains in place.
We are not aware of estate agents accruing commission on the signing of the contract – to the best of our knowledge all agents accrue same on registration of transfer.
Not all contracts of sale are the same but for the purpose of this communication we assume commission is accrued on registration. Although the commission may not have been received on date of registration it definitely, at the very least, accrues on that date.
This has implications which must be considered and explained to clients.
Two scenarios can apply. If the contract of sale reads that a percentage commission plus VAT is payable that will be calculated at 14% if transfer takes place before 1 April 2018 and at 15% when registration takes place on or after 1 April 2018.
The net result is that the Seller (who sold prior to 31 March ) will receive a lower net amount on the selling price because of the increased VAT, should transfer take place after 31 March 2018.
Should the contract of sale refer to a fixed commission amount inclusive of VAT the opposite will apply. The Seller will receive the same amount but the agent will receive less because of the increased VAT.
Please note: the date of the signing of the contract has no impact on this, only the date of transfer does.
Please find below a document from STBB explaining the VAT implications in more detail.
Reminder and Extension of Deadline: Self-Assessment of Compliance With EAAB and FICA
A random sample of estate agencies were selected to complete and submit a self-assessment. You are only required to complete this assessment if you were formally notified to do so by email.
The deadline for submission has been extended to 10 March 2018.
Continuing Professional Development (CPD) in 2018
You are reminded to register and pay for the next CPD cycle by 31 March 2018.
The deadline for the catch-up programme for 2015/2016/2017 ends on 31 March 2018. We believe further extensions will not be granted.
Rebosa Membership and Fees
We are pleased to announce that our membership fees will remain at R20 excluding VAT per FFC per agency, monthly.
Kindly send us the number of FFCs in your office (Principals, Agents and Interns) in order for us to amend our database and adjust our billing for 2018
We thank you for your continued support.