Page 75 - ADVANCED TAXATION - Day 1 Slides
P. 75
Example
Hein is the owner of Rest-a-While, a bed and breakfast establishment
situated in the Natal Midlands.
His total annual receipts from the bed and breakfast business amount to
R75 000. Most of the guests do not stay longer than three nights at a
time. It does sometimes happen that a guest stays a month at a time.
Hein charges R220 per night (excluding VAT) for bed and breakfast.
Explain to Hein the VAT consequences of running his bed and
breakfast business.
