18B.  Temporary letting of residential fixed property (ceases to apply on 1 January 2018)

(1)     For the purposes of this section “developer” means a vendor who continuously or regularly constructs, extends or substantially improves fixed property consisting of any dwelling or continuously or regularly constructs, extends or substantially improves parts of that fixed property for the purpose of disposing of that fixed property after the construction, extension or improvement.

(2)     Notwithstanding the provisions of section 18(1), where goods being fixed property consisting of any dwelling-

(a)     is developed by a vendor who is a developer wholly for the purpose of making taxable supplies or is held or applied for that purpose; and

(b)     is subsequently temporarily applied by that vendor for supplying accommodation in a dwelling under an agreement for the letting and hiring thereof,

the supply of such fixed property shall, subject to subsection (3), be deemed not to be a taxable supply in the course or furtherance of that vendor’s enterprise.

(3)     The fixed property contemplated in subsection (2) shall be deemed to have been supplied by that vendor by way of a taxable supply for a consideration as contemplated in section 10(7) in the course or furtherance of that vendor’s enterprise at the earlier of-

(a)     a period of 36 months after the conclusion of the agreement contemplated in subsection (2)(b); or

(b)     the date that the vendor applies that fixed property permanently for a purpose other than that of making taxable supplies.

(4)     ……….

[Subsection (4) deleted by section 174 of Act 31 of 2013 effective on 10 January 2012]

[Section 18B inserted by section 139 of Act 24 of 2011 with effect from 10 January 2012 and ceases to apply on 1 January 2018 – date of cessation in section 139 of Act 24 of 2011, as substituted by section 111 of Act 43 of 2014]