Page 40 - F6 Slide - VAT Part 2 - Lecture Day 5
P. 40
Output Tax: Exempt Supplies (S 12)
l Accommodation (s 12(c))
Residential accommodation = EXEMPT
Example: supply of a house / flat to another person who
will use the house or flat mainly for residential purposes
Commercial accommodation = VAT @ 14%
Examples:
• Board and lodging, together with domestic goods and
services, in any house, flat, hotel, guesthouse, holiday
accommodation AND annual receipts > R60 000 in 12
months/ expected to > R60 000 in 12 months
• Lodging in home for the aged