The NHBRC has Deregistered from VAT and Adjusted their Fees
In 2011 the NHBRC was deregistered for VAT and they adjusted their registration fees accordingly.
Registration with the NHBRC
Every new home built in South Africa, since December 1999, must by law be registered with the NHBRC. No bank or home loan institution may lend money against the security of a mortgage bond unless the house is registered with the NHBRC. In addition to this the builder must be qualified, certified and registered with the NHBRC as well.
In another article, NHBRC Suspends the Payment of House Enrolment Fees-PA003 we highlighted how the NHBRC is no longer allowing the NHBRC fees to be bundled together with the first draw that the home owner gets from the financial institution – referred to as the PA003. This now has to be done at the time of registration or the house will not be accepted onto the NHBRC’s system.
As at the 1st April 2014 the NHBRC increased their residential house enrollment NHBRC fees by 14%. This increase only applies to non-subsidy enrolments including late inspection fees. Here are their published figures:
Here is a breakdown of how the fees are calculated. These are the older figures and we have left them in this post as they will give you an idea (on the right hand side) how the NHBRC goes about their calculations for the NHBRC fees that they charge. We do advise you to check with your local NHBRC office for the most up to date figures. This table will give you a good idea as to how they have structured the fees and what you can expect to pay.
NHBRC ENROLMENT FEE SCHEDULE excl VAT
Why the NHBRC in South Africa Does Not Charge VAT?
The National Home Builders Registration Council (NHBRC) in South Africa is a government agency that is responsible for regulating the home building industry and promoting quality home construction in the country. As a government entity, the NHBRC is exempt from paying value-added tax (VAT) on the services it provides.
In South Africa, government entities are generally exempt from paying VAT under the Value-Added Tax Act, 1991 (Act No. 89 of 1991). This means that the NHBRC, as a government agency, is not required to charge VAT on its services.
The purpose of this exemption is to avoid the government having to pay VAT on goods and services that it purchases, as well as to prevent double taxation of government entities. This helps to reduce the cost of government services and ensures that public funds are used efficiently.
It’s worth noting that this exemption is specific to government entities and does not apply to businesses or individuals. If a private home builder or contractor provides services that are subject to VAT, they would be required to charge and remit VAT to the South African Revenue Service (SARS) in accordance with the country’s tax laws.