Page 42 - F6 Slide - VAT Part 2 - Lecture Day 5
P. 42
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.
