Objectives

The primary objective of this tender is to obtain an expert legal opinion on the VAT implications related to the purchase and conversion of an office park in Ferndale, Randburg into residential accommodation. The NHFC seeks clarity on whether the transaction qualifies for VAT zero-rating under relevant legislation and whether post-transfer use changes affect VAT treatment.

Scope

The scope includes providing a comprehensive VAT advisory service, specifically:

• Assessing the VAT implications of the purchase of the office park and its conversion into residential units.
• Advising on the VAT treatment of the transaction, including whether it qualifies as a VAT zero-rated supply as a going concern.
• Evaluating the impact of converting the property from office use to residential use immediately after transfer on VAT liability.
• Identifying all material VAT-related risks associated with the transaction.
• Providing a detailed report answering specific questions regarding VAT liability, applicable rates, and risk management.

Technical Requirements

The technical requirements include:

• Providing an expert opinion aligned with relevant legislation and the terms of the sale agreement.
• Assessing whether the sale qualifies for VAT zero-rating as a going concern based on the sale agreement and legal criteria.
• Determining if the post-transfer change from office to residential use affects VAT treatment.
• Delivering a report that clearly explains VAT liability, applicable rates, and risks involved.
• Undertaking a review of the sale agreement and relevant VAT legislation.

Skills Requirements

The successful bidder must demonstrate:

• Experience in providing VAT advisory services, tax opinions, and risk assessments related to property transactions and developments.
• Minimum of five (5) years’ experience in VAT advisory, with expertise in property-related VAT implications.
• Proven track record in advising on VAT treatment of property sales, conversions, and related transactions.
• Qualified professionals with relevant certifications such as Chartered Accountant (CA(SA)), Tax Practitioner, or legal qualifications (LLB with specialization in Tax Law).
• Strong understanding of South African VAT legislation, case law, and tax regulations applicable to property transactions.