Vat law makes reference to these different supplies:
Now let's get to Vat exemptions.
Hiring out your building for holiday accommodation is Vat exempt under these three circumstances
Three case where Vat exemption applies:
#1: If you supply accommodation as a dwelling (place of residence or abode for people) by way of an agreement for letting and hiring;
#2: If you supply lodging or board and lodging supplied to your employee; or
#3: If you're a local authority and supply lodging or board and lodging in a hostel to your employees.
If you get the Vat treatment on property wrong, you'll get severe penalties. SARS is very intolerant of non-compliant taxpayers.
Luckily knowing the three instances when letting your building for holiday accommodation will be Vat exempt will bring you a step closer to being compliant.
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