New OTP – Reap the financial benefits of zero VAT on a sale
The sale of a property together with a business can be complex to navigate, especially when the stakes are high. Because of this, the SalesPack has been redesigned to meet the evolving needs of the industry, providing you with all the necessary sales documents for a commercial or residential sale.
Stay ahead of the game with TPN’s new Offer to Purchase that includes an enterprise as a ‘going concern’. What exactly is a going concern? SARS defines it as the supply of an income-generating activity. This means that the seller would not only be selling the property itself but also the business currently operating on the property, qualifying the transaction for a VAT rate of 0% under certain circumstances.
5 Key Features of the new ‘Commercial OTP for an Enterprise as a Going Concern’:
- Legal Compliance: This type of agreement ensures that the transaction meets all the legal requirements outlined by the Value Added Tax Act 89 of 1991, and the South African Revenue Services (SARS).
- Financial Benefit: The zero-rating of VAT on this type of transaction provides a significant financial benefit to both parties.
- Clarity: The agreement provides clarity on the terms of the sale, including what assets are being sold and the income-generating activity of the property.
- Peace of Mind: By using a comprehensive and legally compliant agreement, parties are assured that their transaction is in line with the necessary regulations and requirements.
- Less Confusion: Transactions involving a going concern can be complex and confusing, but having a clear and legally compliant agreement helps to avoid confusion and ensures a smooth transaction.
Let TPN take care of your transaction and experience the peace of mind that comes with using a comprehensive and legally compliant agreement. Download the latest version of the SalesPack today!
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