Tax opinion on the VAT implications of the purchase of an office park in ferndale, randburg and converting the property into residential accommodation

{"closingDate":"19 June 2026","closingTime":"11:00AM"}

{"name":"Ms Kamogelo Dagane CONTACT PERSON","email":"[email protected]","phone":null,"department":null,"address":"CONTACT PERSON Ms Kamogelo Dagane CONTACT PERSON"}

Returnable Documents: Returnable Documents means all the documents, Sections and Annexures, as listed in the tables below. There are three types of returnable documents as indicated below and Bidders are urged to ensure that these documents are returned with the quotation based on the consequences of non- submission as indicated below: 15 Mandatory Returnable Documents Failure to provide all these Mandatory Returnable Documents at the Closing Date and time of this RFQ will result in a Bidder’s disqualification. Bidders are therefore urged to ensure that all these Documents are returned with their Quotations., UNSUCCESSFUL BIDDERS Should the bidder not receive any communication from NHFC within the validity of the RFQ. The bidder should consider their bid unsuccessful SECTION 3 SECTION 4 SECTION 5 NHFC GENERAL CONDITIONS OF PURCHASE General NHFC and the Supplier enter into an order/contract on these conditions to supply the items (goods/services/works) as described in the order/contract. Conditions These conditions form the basis of the contract between NHFC and the Supplier. Notwithstanding anything to the contrary in any document issued or sent by the Supplier, these conditions apply except as expressly agreed in writing by NHFC. No servant or agent of NHFC has authority to vary these conditions orally. These general conditions of purchase are subject to such further special conditions as may be prescribed in writing by NHFC in the order/contract. Local Content Obligations Bidders are to note that the Local Content commitments made by the successful Bidder(s) will be incorporated as a term of the contract and monitored for compliance. Should the successful Bidder fail to meet its Local obligations, non-compliance penalties shall be applicable. Breach of Local Content obligations also provide NHFC cause to terminate the contract in certain cases where material non- compliance with Local Content requirements are not achieved. Price and payment The price or rates for the items stated in the order/contract may include an amount for price adjustment, which is calculated in accordance with the formula stated in the order/contract. The Supplier may be paid in one currency other than South African Rand. Only one exchange rate is used to convert from this currency to South African Rand. Payment to the Supplier in this currency other than South African Rand, does not exceed the amounts stated in the order/contract. NHFC pays for the item within 30 days of receipt of the Suppliers correct tax invoice. Delivery and documents The Supplier’s obligation is to deliver the items on or before the date stated in the order/contract. Late deliveries or late completion of the items may be subject to a penalty if this is imposed in the order/contract. No payment is made if the Supplier does not provide the item as stated in order/contract. Where items are to be delivered the Supplier: Clearly marks the outside of each consignment or package with the Supplier’s name and full details of the destination in accordance with the order and includes a packing note stating the contents thereof; On dispatch of each consignment, sends to NHFC at the address for delivery of the items, an advice note specifying the means of transport, weight, number of volume as appropriate and the point and date of dispatch; Sends to NHFC a detailed priced invoice as soon as is reasonably practical after dispatch of the items, and states on all communications in respect of the order the order number and code number (if any). Containers / packing material Unless otherwise stated in the order/contract, no payment is made for containers or packing materials or return to the Supplier. Title and risk Without prejudice to rights of rejection under these conditions, title to and risk in the items passes to NHFC when accepted by NHFC. Rejection If the Supplier fails to comply with his obligations under the order/contract, NHFC may reject any part of the items by giving written notice to the Supplier specifying the reason for rejection and whether and within what period replacement of items or re-work are required. In the case of items delivered, NHFC may return the rejected items to the Supplier at the Supplier’s risk and expense. Any money paid to the Supplier in respect of the items not replaced within the time required, together with the costs of returning rejected items to the Supplier and obtaining replacement items from a third party, are paid by the Supplier to NHFC. In the case of service, the Supplier corrects non-conformances as indicated by NHFC. BIDDER’S DISCLOSURE, PURPOSE OF THE FORM Any person (natural or juristic) may make an offer or offers in terms of this invitation to bid. In line with the principles of transparency, accountability, impartiality, and ethics as enshrined in the Constitution of the Republic of South Africa and further expressed in various pieces of legislation, it is required for the bidder to make this declaration in respect of the details required hereunder. Where a person/s are listed in the Register for Tender Defaulters and / or the List of Restricted Suppliers, that person will automatically be disqualified from the bid process., Bidder’s declaration Is the bidder, or any of its directors / trustees / shareholders / members / partners or any person having a controlling interest1 in the enterprise, employed by the state? YES/NO If so, furnish particulars of the names, individual identity numbers, and, if applicable, state employee numbers of sole proprietor/ directors / trustees / shareholders / members/ partners or any person having a controlling interest in the enterprise, in table below. Full Name Identity Number Name of State institution Do you, or any person connected with the bidder, have a relationship with any person who is employed by the procuring institution? YES/NO If so, furnish particulars: ................................................................................................ ................................................................................................ Does the bidder or any of its directors / trustees / shareholders / members / partners or any person having a controlling interest in the enterprise have any interest in any other related enterprise whether or not they are bidding for this contract? YES/NO If so, furnish particulars: ........................................................................................ ........................................................................................ SECTION 7 SBD 6.1 PREFERENCE POINTS CLAIM FORM IN TERMS OF THE PREFERENTIAL PROCUREMENT REGULATIONS 2022 This preference form must form part of all tenders invited. It contains general information and serves as a claim form for preference points for specific goals. NB: BEFORE COMPLETING THIS FORM, TENDERERS MUST STUDY THE GENERAL CONDITIONS, DEFINITIONS AND DIRECTIVES APPLICABLE IN RESPECT OF THE TENDER AND PREFERENTIAL PROCUREMENT REGULATIONS, 2022, GENERAL CONDITIONS 1.1 The following preference point systems are applicable to invitations to tender: 1.2 the 80/20 system for requirements with a Rand value up to R50 000 000 (all applicable taxes included); and 1.3 To be completed by the organ of state (delete whichever is not applicable for this tender)., The applicable preference point system for this tender is the 80/20 preference point system. 1.4 The 80/20 preference point system will be applicable in this tender. The lowest/ highest acceptable tender will be used to determine the accurate system once tenders are received. 1.5 Points for this tender (even in the case of a tender for income-generating contracts) shall be awarded for: (a) Price; and (b) Specific Goals. 1.6 To be completed by the organ of state: The maximum points for this tender are allocated as follows: POINTS PRICE 80 SPECIFIC GOALS 20 Total points for Price and SPECIFIC GOALS 100 1.7 Failure on the part of a tenderer to submit proof or documentation required in terms of this tender to claim points for specific goals with the tender, will be interpreted to mean that preference points for specific goals are not claimed. 1.8 The organ of state reserves the right to require of a tenderer, either before a tender is adjudicated or at any time subsequently, to substantiate any claim in regard to preferences, in any manner required by the organ of state., DEFINITIONS 2.1 “tender” means a written offer in the form determined by an organ of state in response to an invitation to provide goods or services through price quotations, competitive tendering process or any other method envisaged in legislation; 2.2 “price” means an amount of money tendered for goods or services, and includes all applicable taxes less all unconditional discounts; 2.3 “rand value” means the total estimated value of a contract in Rand, calculated at the time of bid invitation, and includes all applicable taxes; 2.4 “tender for income-generating contracts” means a written offer in the form determined by an organ of state in response to an invitation for the origination of income-generating contracts through any method envisaged in legislation that will result in a legal agreement between the organ of state and a third party that produces revenue for the organ of state, and includes, but is not limited to, leasing and disposal of assets and concession contracts, excluding direct sales and disposal of assets through public auctions; and (a) “the Act” means the Preferential Procurement Policy Framework Act, 2000 (Act No. )., FORMULAE FOR PROCUREMENT OF GOODS AND SERVICES 3.1. POINTS AWARDED FOR PRICE 3.1.1 THE 80/20 PREFERENCE POINT SYSTEMS A maximum of 80 points is allocated for price on the following basis

1.2. All bids must be submitted on the official forms provided– (not to be re-typed) or in the manner

Bidders must be registered on the National Treasury Central Supplier Database (CSD), have a valid Tax Compliance Status PIN, and submit a valid B-BBEE certificate or sworn affidavit. The bidder and its directors must not be in the service of the state. The team leader must have a minimum of five years of relevant VAT advisory experience. Bids missing mandatory documents will be disqualified. Only bidders scoring at least 70 points in the functionality evaluation will proceed to the price and preference evaluation stage.

Tax opinion on the VAT implications of the purchase of an office

Park in ferndale, randburg and converting the property into

Residential accommodation

The National Housing Finance Corporation (NHFC) was established by the National Department of

Human Settlements as a development finance institution (DFI) in 1996, with the principle mandate of

broadening access to affordable housing finance for the low- and middle-income households.

NHFC is a national public entity, the NHFC adheres to the regulatory framework of the Public Finance

Management Act (PFMA) of 1999.

The NHFC provides wholesale funding in the affordable housing market mainly to social housing

institutions, non-banking retail intermediaries, privately owned property developers, construction

companies and investors. It also provides loans and other forms of wholesale funding (equity and quasi

equity) to certain niche businesses that are in the affordable housing market.

The NHFC seeks to appoint a service provider to provide an expert opinion on the VAT implications

of a recently approved transaction, in line with the relevant legislation and the terms of the sale

agreement. The objective is to obtain clarity on whether the approved funding structure remains

appropriate or requires adjustment to accommodate VAT, should it be applicable.

At its MCIC meeting of 30 September 2025, NHFC management considered and approved funding

towards the project named Ferndale Oak Avenue Suites. The funding was approved subject to NHFC

obtaining a Tax opinion on VAT implications from a VAT Expert.

2.1 Problem Statement

2.1.1 Case law and VAT

In circumstances where a leased commercial property is being disposed of as a going concern, the

parties must take a certain standard of care to ensure that the applicable VAT provisions are applied.

In accordance with case laws, when disposing of a business, merely selling the assets comprising

the business would attract VAT at the standard rate. Therefore, the disposal of an enterprise as a

going concern is subject to a zero rate provided that the parties agree in writing that the

enterprise, or part thereof, is disposed of as a going concern.

2.1.1 Subject Property and VAT Implication.

Based on the Offer to Purchase (OTP) and the requirements of Section 11(1)(e) of the VAT Act,

the NHFC is of the view that the Seller and the Buyer have satisfied the minimum conditions for the

transaction to be regarded as a VAT zero-rated supply. This assessment is informed by the fact

that the transacting parties have agreed in writing that the enterprise being the office rental

business, is disposed of as a going concern on the date of transfer.

The NHFC further notes that, following the acquisition, the Buyer intends to convert the property’s

core use from office rental to residential rental. While established case law indicates that the sale

of residential rental properties does not ordinarily qualify for VAT zero-rating, Section 11(1)(e)

specifically requires that the enterprise must be an income-earning activity on the date of transfer.

The key wording in Section 11(1)(e) is “on transfer”. The office rental enterprise will still be

generating income on the date of transfer and therefore meets the statutory requirement that the

enterprise must constitute an income-earning activity at that point. Consequently, despite the

Buyer’s intention to convert the property from office use to residential use after transfer, the NHFC

considers the transaction to be VAT zero-rated, as the business is trading as an office rental

enterprise on the date of transfer.

2.1.2 Solution to the problem statement.

The NHFC seeks to appoint a service provider to provide an expert opinion on the VAT implications

of a recently approved transaction, in line with the relevant legislation and the terms of the sale

agreement. The objective is to determine and advise whether converting the subject property from

office use to residential use immediately after transfer would render the sale vatable at the standard

rate of 15%, or whether the transaction would remain VAT zero-rated despite the post-transfer

change in asset use.

The NHFC seeks to appoint a service provider to provide an expert opinion on the VAT implications

of a recently approved transaction, in line with the relevant legislation and the terms of the sale

agreement. The objective is to determine and advise whether converting the subject property from

office use to residential use immediately after transfer would render the sale vatable at the standard

rate of 15%, or whether the transaction would remain VAT zero-rated despite the post-transfer

change in asset use.

4. Assignment Objectives

• To review the Offer to Purchase and assess the impact of Buyer’s intention to convert the

property from office use to residential use after the transfer and and advise whether converting

the subject property from office use to residential use immediately after transfer would render

the sale vatable at the standard rate of 15%, or whether the transaction would remain VAT zero-

rated despite the post-transfer change in asset use.

• To establish what considerations are to be taken when assessing the conversion of an office park into a

residential accommodation, when assessing VAT implications

5. Scope of work / Key Deliverables:

Duties include, but are not limited to, the following:

5.1 Undertake a review of the transaction, where an office park in Ferndale, Randburg will be purchased

and converted into residential units and;

5.2 Undertake to provide NHFC with a report to answer the following questions:

5.2.1 What are the considerations when assessing the VAT implications of converting an office

park into a residential dwelling to be let out to dwellers?

5.2.2 What are the VAT implications of this specific conversion of the above-mentioned subject

property?

5.2.3 Who would be liable for the VAT implications, after considering the sale agreement between

the two parties?

5.3 Compile a comprehensive report with findings, conclusions, and recommendations that include the

following:

• VAT implications of the transaction, defining clearly if the transaction attracts a VAT liability

or is an exempt supply, additionally, if not an exempt transaction, what identify what VAT rate is

to be applied.

• Comprehensive VAT Risk Assessment, including the identification, evaluation, and mitigation

of all material VAT-related risks associated with the transaction

• Liability of VAT, having reviewed the sale agreement and relevant legislation, define which party

is to be held liable for the VAT in the event of VAT being applicable.

• Analysis of factors to consider in the assessment of the VAT implications on the transaction
• General Commentary on the factors to consider in assessing VAT implications on transactions.
• Findings, Recommendations, and Conclusion to guide NHFC’s decision-making and

risk management.

6. Project Deliverables and Timeframe

1. The first Draft comprehensive report (electronic) to be submitted within 3 weeks from the

appointment letter issue date; and

2. The final report incorporating feedback from the draft report is to be submitted (hard copy and

electronic) – no later than 5 weeks from the appointment letter issue date.

15 points

Good Methodology - The approach and methodology are well defined and

demonstrate a thorough understanding of the scope of work

10 points

Average Methodology - The approach and methodology are fair and demonstrate

little understanding of the scope of work

Unsatisfactory Methodology - The approach and methodology are poor and 5 points

demonstrate no understanding of the scope of work

No Methodology submitted 0 point

TOTAL Total points 100

Phase 3 - Price and Preference Evaluation

As the bid price is estimated to be below R50 million, the bid responses will be evaluated on the 80/20-point system.

As per the table below, price is evaluated over 80 points and preference points over 20:

1 Price 80 points

2 Specific Goals 20 points

# Specific Goal Proof Points

Allocation

1 South African citizen who had no

• Company Registration Certification 7

franchise in national elections prior to (CIPC)

the introduction of the Constitution of

• Certified identification documentation of

the Republic of South Africa, 1983 (Act company director/s

) or the Constitution of the

• CSD report/ CSD registration number

Republic of South Africa, 1996. (MAAA number)

(Minimum >50% ownership or more)

2 Woman Ownership >50%

• Company Registration Certification 8

(Cipc)

• Certified identification documentation of

company director/s

• CSD report/ CSD registration number

(MAAA number)

3 Disabled Ownership >50%

• Company Registration Certification 1

(Cipc)

• Certified identification documentation of

company director/s

• CSD report/ CSD registration number

(MAAA number)

• Certified medical certificate from a

registered medical practitioner

4 Military veteran Ownership >50%

• Company Registration Certification 1

(Cipc)

• Certified identification documentation of

company director/s

• CSD report/ CSD registration number

(MAAA number)

• A verifiable letter from an authorised

body/entity certifying the military status

of the claimant (bidder).

5 Youth Ownership >50%

• Company Registration Certification 3

(Cipc)

• Certified identification documentation of

company director/s

• CSD report/ CSD registration number

(MAAA number)

• CSD report / CSD registration number (

MAAA number).

considered.

3 Letters as per the above 30 points

2 Letters as per the above 20 points

1 Letter as per the above 10 points

No Letter 0 point

QUALIFICATIONS AND EXPERIENCE OF TEAM LEADER Total points - 40

Project Team Leader must have a minimum of five (5) years’ experience in VAT advisory services, including

the assessment of VAT implications, VAT risk assessments, interpretation of VAT legislation, and preparation

of VAT advisory reports. Experience in property-related transactions will be considered an advantage. Proof of

experience must be supported by a detailed CV clearly indicating the projects undertaken, the role performed,

and the duration of involvement.

Ten (10) years or more relevant VAT advisory experience, 25 points

including experience in property-related VAT assignments

Eight (8) to nine (9) years' relevant VAT advisory experience, 20 points

including experience in property-related VAT assignments

Six (6) to seven (7) years' relevant VAT advisory experience 15 points

Five (5) years' relevant VAT advisory experience 10 points

Less than five (5) years' relevant VAT advisory experience 0 point

Demonstrate that the team leader has the requisite qualification(s) in any one of the following: Taxation /

Financial Accounting / Commerce (with Taxation as a major) / Law (LLB) with specialization in Tax Law: (Must

attach copies of qualifications)

Master’s degree / PHD / Doctorate NQF Level 9 + 15 points

Honours Degree /Postgraduate Diploma NQF Level 8 10 points

Undergraduate qualification NQF Level 7(degree) 5 points

No relevant qualification 0 points

PROFESSIONAL REGISTRATIONS Total points - 10

Professional Registrations / Certifications (Advantageous). (Must attach copies of professional

registrations / certifications)

o Registered Chartered Accountant (CA(SA)) with the South African Institute of Chartered

Accountants; or

o Registered Professional Tax Practitioner or Master Tax Practitioner with the South African Institute

of Taxation; or

o Admitted Attorney with experience in Tax Law and Property Law.

PROPOSED TECHNICAL APPROACH AND METHODOLOGY OF THE BIDDER Total points - 20

elements of this project's deliverables

Very Good Methodology - The approach and methodology are exceptional with 20 points

highly innovative solutions and demonstrate an exceptional understanding of the

scope of work

15 points

little understanding of the scope of work

Unsatisfactory Methodology - The approach and methodology are poor and 5 points

demonstrate no understanding of the scope of work

No Methodology submitted 0 point

TOTAL Total points 100

Phase 3 - Price and Preference Evaluation

As the bid price is estimated to be below R50 million, the bid responses will be evaluated on the 80/20-point system.

As per the table below, price is evaluated over 80 points and preference points over 20:

1 Price 80 points

2 Specific Goals 20 points

# Specific Goal Proof Points

Quoted price must include all costs that will be incurred during the duration of the contract,

Table 1: tax opinion on the VAT implications of the purchase of an office park in

Ferndale, randburg and converting the property into residential

Accommodation

UNIT PRICE (VAT Excl.) TOTAL COST FOR EACH UNIT (VAT

NO ITEM DESCRIPTION QUANTITY Excl.)

1 VAT opinion report 1

Sub Total (VAT Excl.)

VAT @ 15%

GRAND TOTAL INCLUDING (VAT Incl..)

Annexure 1 Tax Compliance Status Pin

Annexure 2 Copies of Company Registration Documents

Annexure 3 Copy of Valid B-BBEE certificate or Sworn Affidavit.

Annexure 4 Current Central Supplier Database Report Copy

Annexure 5 SBD 1: Invitation to Bid

Annexure 6 Pricing Schedule

Annexure 7 SBD 4: Bidder’s Disclosure

Annexure 8 SBD 6.1: Preference Point Claim Form in Terms of Preferential

Procurement Regulations 2022

Annexure 9 Identity Document of Directors

Section 1

Sbd 1 invitation to bid

1 South African citizen who had no

• Company Registration Certification 7

franchise in national elections prior to (CIPC)

the introduction of the Constitution of

• Certified identification documentation of

the Republic of South Africa, 1983 (Act company director/s

) or the Constitution of the

• CSD report/ CSD registration number

Republic of South Africa, 1996. (MAAA number)

(Minimum >50% ownership or more)

2 Woman Ownership >50%

• Company Registration Certification 8

(Cipc)

• Certified identification documentation of

company director/s

• CSD report/ CSD registration number

(MAAA number)

3 Disabled Ownership >50%

• Company Registration Certification 1

(Cipc)

• Certified identification documentation of

company director/s

• CSD report/ CSD registration number

(MAAA number)

• Certified medical certificate from a

registered medical practitioner

4 Military veteran Ownership >50%

• Company Registration Certification 1

(Cipc)

• Certified identification documentation of

company director/s

• CSD report/ CSD registration number

(MAAA number)

• A verifiable letter from an authorised

body/entity certifying the military status

of the claimant (bidder).

5 Youth Ownership >50%

• Company Registration Certification 3

(Cipc)

• Certified identification documentation of

company director/s

• CSD report/ CSD registration number

(MAAA number)

• CSD report / CSD registration number (

MAAA number).

Pricing schedule

Valid Tax Clearance Certificate (must be valid on closing date of

Tax Compliance Status Pin

Tax compliance status

Tax compliance requirements

Tax compliance status (tcs) pin may be made via e-filing through the SARS website

Tcs pin is available but the bidder is registered on the central supplier database (csd), a

Csd number

Csd number must be provided

CSD report / CSD reference number

CSD report/ CSD registration number

CSD report / CSD registration number (

CSD report/ CSD

Central Supplier Database Report Copy

Central supplier database (csd), a

Central supplier database

Central Supplier Database (CSD) which has been

Proof of experience must be supported by a detailed CV clearly indicating the projects undertaken, the role performed,

appointment letter issue date

2. Prequalification / eligibility criteria

2.1 Only those Bidders who satisfy the following pre-qualification or eligibility criteria are eligible to

Bidder/s are warned that a response will be liable for disqualification should any attempt be made either

will result in a Bidder’s disqualification. Bidders are therefore urged to ensure that all these Documents

a) Company Registration Documents

d) Valid Tax Clearance Certificate (must be valid on closing date of

e) CSD report / CSD reference number

h) Pricing Schedule Mandatory

j) SBD 4: Bidders disclosure

QUALIFICATIONS AND EXPERIENCE OF TEAM LEADER Total points - 40

experience must be supported by a detailed CV clearly indicating the projects undertaken, the role performed,

2. Tax compliance requirements

B-BBEE Minimum Level: 9

Points Allocation: 80 points

B-BBEE Details: TAX OPINION ON THE VAT IMPLICATIONS OF THE

Purchase of an office park in ferndale, randburg and conver ting the

Property into residential accommodation

RFQ documents check list:

The contents of the RFQ document must be numbered as per the numbering below, converted to a pdf

file and submitted via email before the closing date. Please complete the checklist below to verify your

submission of the relevant documents:

Schedules Description Submitted – Indicate

YES or NO

Annexure 1 Tax Compliance Status Pin

Annexure 2 Copies of Company Registration Documents

Annexure 3 Copy of Valid B-BBEE certificate or Sworn Affidavit.

Annexure 4 Current Central Supplier Database Report Copy

Annexure 5 SBD 1: Invitation to Bid

Annexure 6 Pricing Schedule

Annexure 7 SBD 4: Bidder’s Disclosure

Annexure 8 SBD 6.1: Preference Point Claim Form in Terms of Preferential

Procurement Regulations 2022

Annexure 9 Identity Document of Directors

Section 1

Sbd 1 invitation to bid

You are hereby invited to bid for requirements of the NHFC soc ltd.

Closing

BID NUMBER: NHFC009989 CLOSING DATE: 19 June 2026 11:00AM TIME:

Description tax opinion on the VAT implications of the purchase of an office park in

Ferndale, randburg and converting the property into residential

Accommodation

Bid response documents may be emailed to:

[email protected]

Bidding procedure enquiries may be technical enquiries may be directed to:

Directed to

CONTACT PERSON Ms Kamogelo Dagane CONTACT PERSON

Telephone

Number telephone number

Facsimile number n/a facsimile number

E-MAIL ADDRESS [email protected] E-MAIL ADDRESS

Supplier information

Name of bidder

Postal address

Street address

Telephone

Number code number

Cellphone

Number

Facsimile number code number

E-mail

• The NHFC undertakes to pay out within 30 days from issuance of substantiated

invoices issued in terms of this appointment (Payment schedule as defined in the

service level agreement). No payment will be made on outstanding information not

submitted by the service provider. Service provider must maintain an updated tax

compliant status for the during of the contract.

• The cost of compiling a Proposal is and remains the prospective service provider’s

own cost and will not be paid for by NHFC.

• The successful bidder (s) will be required to sign a Service Level Agreement (SLA), in

terms of which the service provider’s performance will be measured and managed.

• NHFC has zero tolerance for reputational harm. The bidder hereby gives consent to

the NHFC to conduct background checks on the bidding entity and any of its directors

/ partners / trustees / shareholders /members/employees. The NHFC reserves the

right to consider the information arising from such background check as part of the

tender evaluation process.

• The NHFC reserves the right to reject submitted proposal(s) if it discovers that the

bidder (or its directors/members) has any serious adverse reports, whether confirmed

by a court or not, such as:

• Being cited as aiding and abetting state capture,

• Involvement in fraud and / or corrupt activities;

• Misrepresenting audit outcomes of an organisation;

• Listed on the National Treasury restricted database;

• Being under investigation or facing allegations that may result in criminal

charges; or

• Any report as a result of which the NHFC may suffer reputational harm in

any way by doing business with the bidder.

9 national treasury’s central supplier database

Bidders are required to self-register on National Treasury’s Central Supplier Database (CSD) which has been

established

to centrally administer supplier information for all organs of state and facilitate the verification of certain key

supplier information. NHFC is required to ensure that price quotations are invited and accepted from prospective

bidders listed on the CSD. Business may not be awarded to a bidder who has failed to

register on the CSD. Only foreign suppliers with no local registered entity need not register

on the CSD. The CSD can be accessed at https://secure.csd.gov.za.

1. Introduction

The National Housing Finance Corporation (NHFC) was established by the National Department of

Human Settlements as a development finance institution (DFI) in 1996, with the principle mandate of

broadening access to affordable housing finance for the low- and middle-income households.

the business would attract VAT at the standard rate. Therefore, the disposal of an enterprise as a

going concern is subject to a zero rate provided that the parties agree in writing that the

enterprise, or part thereof, is disposed of as a going concern.

2.1.1 Subject Property and VAT Implication.

Based on the Offer to Purchase (OTP) and the requirements of Section 11(1)(e) of the VAT Act,

the NHFC is of the view that the Seller and the Buyer have satisfied the minimum conditions for the

transaction to be regarded as a VAT zero-rated supply. This assessment is informed by the fact

that the transacting parties have agreed in writing that the enterprise being the office rental

business, is disposed of as a going concern on the date of transfer.

The NHFC further notes that, following the acquisition, the Buyer intends to convert the property’s

core use from office rental to residential rental. While established case law indicates that the sale

of residential rental properties does not ordinarily qualify for VAT zero-rating, Section 11(1)(e)

specifically requires that the enterprise must be an income-earning activity on the date of transfer.

The key wording in Section 11(1)(e) is “on transfer”. The office rental enterprise will still be

generating income on the date of transfer and therefore meets the statutory requirement that the

enterprise must constitute an income-earning activity at that point. Consequently, despite the

Buyer’s intention to convert the property from office use to residential use after transfer, the NHFC

considers the transaction to be VAT zero-rated, as the business is trading as an office rental

enterprise on the date of transfer.

2.1.2 Solution to the problem statement.

I, the undersigned, (name)... ................................................................................................ in submitting the accompanying

bid, do hereby make the following statements that I certify to be true and complete in every respect:

3.1 I have read and I understand the contents of this disclosure;

3.2 I understand that the accompanying bid will be disqualified if this disclosure is found not to be true and complete

in every respect;

3.3 The bidder has arrived at the accompanying bid independently from, and without consultation, communication,

agreement or arrangement with any competitor. However, communication between partners in a joint venture or

consortium2 will not be construed as collusive bidding.

3.4 In addition, there have been no consultations, communications, agreements or arrangements with any competitor

regarding the quality, quantity, specifications, prices, including methods, factors or formulas used to calculate

prices, market allocation, the intention or decision to submit or not to submit the bid, bidding with the intention not

to win the bid and conditions or delivery particulars of the products or services to which this bid invitation relates.

3.5 There have been no consultations, communications, agreements or arrangements made by the bidder with any

official of the procuring institution in relation to this procurement process prior to and during the bidding process

except to provide clarification on the bid submitted where so required by the institution; and the bidder was not

involved in the drafting of the specifications or terms of reference for this bid.

3.6 I am aware that, in addition and without prejudice to any other remedy provided to combat any restrictive practices

related to bids and contracts, bids that are suspicious will be reported to the Competition Commission for

investigation and possible imposition of administrative penalties in terms of section 59 of the Competition Act No

and or may be reported to the National Prosecuting Authority (NPA) for criminal investigation and or

may be restricted from conducting business with the public sector for a period not exceeding ten (10) years in

terms of the Prevention and Combating of Corrupt Activities Act No or any other applicable legislation.

I CERTIFY THAT THE INFORMATION FURNISHED IN PARAGRAPHS 1, 2 and 3 ABOVE IS CORRECT. I ACCEPT

That the state may reject the bid or act against me in terms of paragraph 6 of PFMA SCM

Instruction /22 on preventing and combating abuse in the supply chain management

Without prejudice to any other rights of NHFC under these conditions, the Supplier warrants that the items

are in accordance with NHFC’s requirements, and fit for the purpose for which they are intended, and will

remain free from defects for a period of one year (unless another period is stated in the Order) from

acceptance of the items by NHFC.

The Supplier indemnifies NHFC against all actions, suits, claims, demands, costs, charges and expenses

arising in connection therewith arising from the negligence, infringement of intellectual or legal rights or

breach of statutory duty of the Supplier, his subcontractors, agents or servants, or from the Supplier’s

defective design, materials or workmanship.

The Supplier indemnifies NHFC against claims, proceedings, compensation and costs payable arising out

of infringement by the Supplier of the rights of others, except an infringement which arose out of the use by

the Supplier of things provided by NHFC.

Assignment and sub-contracting

The Supplier may not assign or subcontract any part of this order/contract without the written consent of NHFC.

NHFC may terminate the order/contract at any time (without prejudice to any right of action or remedy

which has accrued or thereafter accrues to NHFC):

If the Supplier defaults in due performance of the order/contract, or if the Supplier becomes bankrupt or

otherwise is, in the opinion of NHFC, in such financial circumstances as to prejudice the proper performance

of the order/contract, or for any other reason in which case the Supplier will be compensated for all costs

incurred.

Governing law

The order/contract is governed by the law of the Republic of South Africa and the parties hereby submit to

the non- exclusive jurisdiction of the South African courts.

Section 6

Sbd 4

5.1 Undertake a review of the transaction, where an office park in Ferndale, Randburg will be purchased

and converted into residential units and;

5.2 Undertake to provide NHFC with a report to answer the following questions:

5.2.1 What are the considerations when assessing the VAT implications of converting an office

park into a residential dwelling to be let out to dwellers?

5.2.2 What are the VAT implications of this specific conversion of the above-mentioned subject

property?

5.2.3 Who would be liable for the VAT implications, after considering the sale agreement between

the two parties?

5.3 Compile a comprehensive report with findings, conclusions, and recommendations that include the

following:

• VAT implications of the transaction, defining clearly if the transaction attracts a VAT liability

or is an exempt supply, additionally, if not an exempt transaction, what identify what VAT rate is

to be applied.

• Comprehensive VAT Risk Assessment, including the identification, evaluation, and mitigation

of all material VAT-related risks associated with the transaction

• Liability of VAT, having reviewed the sale agreement and relevant legislation, define which party

is to be held liable for the VAT in the event of VAT being applicable.

• Analysis of factors to consider in the assessment of the VAT implications on the transaction
• General Commentary on the factors to consider in assessing VAT implications on transactions.
• Findings, Recommendations, and Conclusion to guide NHFC’s decision-making and

risk management.

Bidders are to note that the Local Content commitments made by the successful Bidder(s) will be

incorporated as a term of the contract and monitored for compliance. Should the successful Bidder fail to

meet its Local obligations, non-compliance penalties shall be applicable. Breach of Local Content

obligations also provide NHFC cause to terminate the contract in certain cases where material non-

compliance with Local Content requirements are not achieved.

arising in connection therewith arising from the negligence, infringement of intellectual or legal rights or

breach of statutory duty of the Supplier, his subcontractors, agents or servants, or from the Supplier’s

defective design, materials or workmanship.

Termination

NHFC may terminate the order/contract at any time (without prejudice to any right of action or remedy

which has accrued or thereafter accrues to NHFC):

4.1. Name of company/firm...............................................................................

4.2. Company registration number: .....................................................................

4.3. Type of company/ firm

□ Partnership/Joint Venture / Consortium

□ One-person business/sole propriety

□ Close corporation

□ Public Company

□ Personal Liability Company

□ (Pty) Limited

□ Non-Profit Company

□ State Owned Company

[Tick applicable box]

4.4. I, the undersigned, who is duly authorised to do so on behalf of the company/firm, certify that the points claimed, based on

the specific goals as advised in the tender, qualifies the company/ firm for the preference(s) shown and I acknowledge that:

i) The information furnished is true and correct;

4.5. The preference points claimed are in accordance with the General Conditions as indicated in paragraph 1 of this form;

4.6. In the event of a contract being awarded as a result of points claimed as shown in paragraphs 1.4 and 4.2, the contractor

may be required to furnish documentary proof to the satisfaction of the organ of state that the claims are correct;

4.7. If the specific goals have been claimed or obtained on a fraudulent basis or any of the conditions of contract have not been

fulfilled, the organ of state may, in addition to any other remedy it may have –

(a) disqualify the person from the tendering process;

(b) recover costs, losses or damages it has incurred or suffered as a result of that person’s conduct;

(c) cancel the contract and claim any damages which it has suffered as a result of having to make less

favourable arrangements due to such cancellation;

(d) recommend that the tenderer or contractor, its shareholders and directors, or only the shareholders and

directors who acted on a fraudulent basis, be restricted from obtaining business from any organ of state

for a period not exceeding 10 years, after the audi alteram partem (hear the other side) rule has been

applied; and

(e) forward the matter for criminal prosecution, if deemed necessary.

..............................................

Signature(s) of tenderer(s)

Surname and name: ................................................................

Date: ...............................................................

Address: ...............................................................

...............................................................

...............................................................

1.1. Bids must be delivered by the stipulated time to the correct address. Late bids will not be

OR STATUS SYSTEM PIN: DATABASE No: MAAA B-BBEE STATUS [TICK APPLICABLE BOX] B-BBEE STATUS LEVEL SWORN [TICK APPLICABLE LEVEL AFFIDAVIT BOX] [A B-BBEE STATUS LEVEL VERIFICATION CERTIFICATE/ SWORN AFFIDAVIT (FOR EMES & QSEs) MUST BE SUBMITTED IN ORDER TO QUALIFY FOR PREFERENCE POINTS FOR B-BBEE]

Evaluation of bids received will be conducted in Three (03) phases as follows:

Phase 1 – Administrative Compliance Requirements

This stage checks and validates the bidders’ compliance to the legal requirements to conduct business in South Africa, as

well as to the industry requirement for the supply of goods and services. All SBDs must be submitted (signed) noting where

it is not applicable. If any specific SBD is not submitted, documentary proof, clearly stating the reason must be attached.

No. Description of requirement

a) Company Registration Documents

b) Copies of Directors’ ID documents;

c) Valid BBBEE Certificate from a SANAS accredited rating agency

(Original or Certified) or affidavit signed by the Commissioner of Oath

d) Valid Tax Clearance Certificate (must be valid on closing date of

submission of the proposal) and SARS Issued Pin

e) CSD report / CSD reference number

f) Company Profile

h) Pricing Schedule Mandatory

i) SBD1: Invitation to bid

j) SBD 4: Bidders disclosure

k) SBD 6: Preference Point Claim Form in Terms of Preferential Procurement Regulations

2022

NB: if the bidder failed to comply with any of the Administrative Compliance Requirements, or if the NHFC is unable to verify

whether the Administrative Compliance Requirements are met, then the NHFC reserves the right to:

• Accept the bid for evaluation on condition that the bidder submits within 7 working days any supplementary

information to achieve full compliance with Administrative Compliance Requirements.

• All forms, annexures and addendums shall be signed and completed and returned with the Bid Document as a

whole. The lowest or any Bid will not necessarily be accepted.

Phase 2 – FUNCTIONALITY EVALUATION CRITERIA

• Supporting material must be provided for the elements below.
• Only bidders scoring a minimum of 70 points out of 100 points on functional evaluation criteria will be considered for price

and specific goals evaluation.

BIDDER’S PAST RELEVANT EXPERIENCE AND TRACK RECORD Total points - 30

The bidder must demonstrate experience in providing VAT advisory services, tax opinions, tax risk

assessments, transaction tax reviews, or similar tax-related consulting assignments involving property

transactions, property developments, residential conversions, or corporate transactions.

Signed reference letters which must include the following information:

• not older than 5 years confirming successful completion of similar assignments (2021 onwards),

• with a company logo/ company letterhead

• with contact details of the referee and signed by the referee

• description of service

Reference letters with any of the above required information omitted will not be

considered.

3 Letters as per the above 30 points

2 Letters as per the above 20 points

1 Letter as per the above 10 points

No Letter 0 point

QUALIFICATIONS AND EXPERIENCE OF TEAM LEADER Total points - 40

Project Team Leader must have a minimum of five (5) years’ experience in VAT advisory services, including

the assessment of VAT implications, VAT risk assessments, interpretation of VAT legislation, and preparation

of VAT advisory reports. Experience in property-related transactions will be considered an advantage. Proof of

experience must be supported by a detailed CV clearly indicating the projects undertaken, the role performed,

and the duration of involvement.

Ten (10) years or more relevant VAT advisory experience, 25 points

including experience in property-related VAT assignments

Eight (8) to nine (9) years' relevant VAT advisory experience, 20 points

including experience in property-related VAT assignments

Six (6) to seven (7) years' relevant VAT advisory experience 15 points

Five (5) years' relevant VAT advisory experience 10 points

Less than five (5) years' relevant VAT advisory experience 0 point

Demonstrate that the team leader has the requisite qualification(s) in any one of the following: Taxation /

Financial Accounting / Commerce (with Taxation as a major) / Law (LLB) with specialization in Tax Law: (Must

attach copies of qualifications)

Master’s degree / PHD / Doctorate NQF Level 9 + 15 points

Honours Degree /Postgraduate Diploma NQF Level 8 10 points

Undergraduate qualification NQF Level 7(degree) 5 points

No relevant qualification 0 points

PROFESSIONAL REGISTRATIONS Total points - 10

Professional Registrations / Certifications (Advantageous). (Must attach copies of professional

registrations / certifications)

o Registered Chartered Accountant (CA(SA)) with the South African Institute of Chartered

Accountants; or

o Registered Professional Tax Practitioner or Master Tax Practitioner with the South African Institute

of Taxation; or

o Admitted Attorney with experience in Tax Law and Property Law.

PROPOSED TECHNICAL APPROACH AND METHODOLOGY OF THE BIDDER Total points - 20

Proposed Methodology, which shows how specific proposed actions will lead to the attainment of the various

elements of this project's deliverables

Very Good Methodology - The approach and methodology are exceptional with 20 points

highly innovative solutions and demonstrate an exceptional understanding of the

Pt−Pmin

Ps= 80(1− )

Pmin

Where

Ps = Points scored for price of tender under consideration

Pt = Price of tender under consideration

Pmin = Price of lowest acceptable tender

3.2. Formulae for disposal or leasing of state assets and income generating procurement

3.2.1. Points awarded for price

A maximum of 80 points is allocated for price on the following basis:

80/10

Pt−Pmax

Ps= 80(1+ )

Pmax

Where

Ps = Points scored for price of tender under consideration

Pt = Price of tender under consideration

Pmax = Price of highest acceptable tender

4. Points awarded for specific goals

4.1 In terms of Regulation 4(2); 5(2); 6(2) and 7(2) of the Preferential Procurement Regulations, preference points must be

awarded for specific goals stated in the tender. For the purposes of this tender the tenderer will be allocated points based

on the goals stated in table 1 below as may be supported by proof/ documentation stated in the conditions of this tender:

4.2 In cases where organs of state intend to use Regulation 3(2) of the Regulations, which states that, if it is unclear whether

the 80/20 or 90/10 preference point system applies, an organ of state must, in the tender documents, stipulate in the case

of—

a) an invitation for tender for income-generating contracts, that either the 80/20 or 90/10 preference point system will apply and

that the highest acceptable tender will be used to determine the applicable preference point system; or

b) any other invitation for tender, that either the 80/20 or 90/10 preference point system will apply and that the lowest acceptable

tender will be used to determine the applicable preference point system,

then the organ of state must indicate the points allocated for specific goals for both the 80/20 or 90/10 preference point system.

Table 1: Specific goals for the tender and points claimed are indicated per the table below.

Note to tenderers: The tenderer must indicate how they claim points for each preference point system.)

Supporting evidence for Number of

meeting preferential Number of points points claimed

procurement targets (80/20 system) The specific goals allocated allocated (bidder to provider the

points in terms of this (80/20 system) (To be below supporting tender completed by the

evidence to claim (To be completed by tenderer)

allocated points for each the organ of state)

specific goal)

South African citizen who had

• Company Registration 7

no franchise in national Certification (CIPC)

elections prior to the

• Certified identification

introduction of the Constitution documentation of

of the Republic of South company director/s

Africa, 1983 (Act )

• CSD report/ CSD

or the Constitution of the registration number

Republic of South Africa, (MAAA number)

1996.

(Minimum >50% ownership or

more)

Woman Ownership >50%

• Company Registration 8

Certification (CIPC)

• Certified identification

documentation of

company director/s

• CSD report/ CSD

registration number

(MAAA number)

Disabled Ownership >50%

• Company Registration 1

Certification (CIPC)

• Certified identification

documentation of

company director/s

• CSD report/ CSD

registration number

(MAAA number)

• Certified medical

certificate from a

registered medical

practitioner

• Company Registration Military veteran Ownership 1

Certification (CIPC) >50%

• Certified identification

documentation of

company director/s

• CSD report/ CSD

registration number

(MAAA number)

• A verifiable letter from

an authorised

body/entity certifying

the military status of

the claimant (bidder).

• Company Registration Youth Ownership >50% 3

Certification (CIPC)

• Certified identification

documentation of

company director/s

• CSD report/ CSD

registration number

(MAAA number)

Declaration with regard to company/firm

4.1. Name of company/firm...............................................................................

4.2. Company registration number: .....................................................................

4.3. Type of company/ firm

□ Partnership/Joint Venture / Consortium

□ One-person business/sole propriety

□ Close corporation

□ Public Company

□ Personal Liability Company

□ (Pty) Limited

□ Non-Profit Company

□ State Owned Company

[Tick applicable box]

4.4. I, the undersigned, who is duly authorised to do so on behalf of the company/firm, certify that the points claimed, based on

the specific goals as advised in the tender, qualifies the company/ firm for the preference(s) shown and I acknowledge that:

i) The information furnished is true and correct;

4.5. The preference points claimed are in accordance with the General Conditions as indicated in paragraph 1 of this form;

4.6. In the event of a contract being awarded as a result of points claimed as shown in paragraphs 1.4 and 4.2, the contractor

may be required to furnish documentary proof to the satisfaction of the organ of state that the claims are correct;

4.7. If the specific goals have been claimed or obtained on a fraudulent basis or any of the conditions of contract have not been

fulfilled, the organ of state may, in addition to any other remedy it may have –

(a) disqualify the person from the tendering process;

(b) recover costs, losses or damages it has incurred or suffered as a result of that person’s conduct;

(c) cancel the contract and claim any damages which it has suffered as a result of having to make less

favourable arrangements due to such cancellation;

(d) recommend that the tenderer or contractor, its shareholders and directors, or only the shareholders and

directors who acted on a fraudulent basis, be restricted from obtaining business from any organ of state

for a period not exceeding 10 years, after the audi alteram partem (hear the other side) rule has been

applied; and

(e) forward the matter for criminal prosecution, if deemed necessary.

..............................................

Signature(s) of tenderer(s)

Surname and name: ................................................................

Date: ...............................................................

Address: ...............................................................

...............................................................

...............................................................