Page 63 - P6 Slide Taxation - Lecture Day 5 - VAT Part 1

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 @ 15%

Examples:

• Board and lodging, together with domestic goods and

services, in any house, flat, hotel, guesthouse, holiday

accommodation AND annual receipts > R120 000 in

12 months/ expected to > R120 000 in 12 months

• Lodging in home for the aged