VAT on Accommodation in South Africa

Is VAT deducted on Accommodation  in South Africa?

If the person stays for 28 days or less, then the full amount of charges attracts VAT. If, however, the stay is for longer than 28 days only 60% of the amount charged regularly (i.e. as part of the package) is deemed to be vatable at 15% from day one.

Do we charge VAT on accommodation?

There is no VAT on residential property. This is an exempt supply in terms of the VAT Act.

How do I calculate VAT on accommodation?

VAT is accordingly payable at the standard rate of 15% on the value of the supply determined in accordance with section 10(10) of the VAT Act.

Do hotels charge VAT in South Africa?

Is There Vat On Accommodation In South Africa? A hotel stays in hotels provided over a period up to 28 days will incur VAT on the charge (17 p.c.) upon lodging the accommodation, goods, and services for all in one hotel.

What is the VAT rate in South Africa 2022?

VAT is levied at the standard rate of 15% on the supply of goods and services by registered vendors. A vendor making taxable supplies of more than R1 million per annum must register for VAT.

What is exempt from VAT in South Africa?

While all fee-based financial services are subject to VAT, interest charged is exempt. Other exempt supplies include residential rentals, non-international passenger transport by road or rail, and educational services.