Where the seller is registered for VAT.
The transaction will however be regarded as zero rated (with other words no VAT has to be paid) if the following requirements are met:
1. Both the seller and the purchaser are registered for VAT.
2. The property is sold as a going concern which is capable of separate operation and an income earning activity, both of which must be stipulated as such in the agreement.
If the transaction does not comply with 2 but with 1, the purchaser can claim back the VAT with his next return.
Where the seller is not registered for VAT, transfer duty is payable which can also be claimed back by the purchaser, should he be registered for VAT.