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
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