Addressing how the recent VAT increase applies to construction contracts that were concluded before 1 April 2018, Cliffe Dekker Hofmeyr Inc published an article stating that where a construction contract for the construction of a new dwelling, in which the construction price is stated, was concluded before 1 April 2018, the construction services would attract VAT at 14%, irrespective of when the services are rendered or completed.
After receiving more questions from Association of South African Quantity Surveyors (ASAQS) members, Gerhard Badenhorst, director for tax and exchange control at Cliffe Dekker Hofmeyr Inc, provided a detailed opinion on this issue, which is available on the ASAQS website (

Practical example
Given that the principal contractor is a construction enterprise who has entered into an agreement to build a new dwelling at a certain determined price, stipulated in an agreement concluded subject to 14% VAT prior to 1 April 2018.

The Association of South African Quantity Surveyors
Tel: 011 315 4140

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