VAT Rate 8.4% on accomodation & living costs exceeding 28 days- Guest Houses and Hotels.

The VAT Act has special provisions relating to the calculation of VAT by hotels and residential hotels. These provisions attempt to put persons living in hotels, boarding houses and old age homes on an equal footing with persons living in flats and houses because the rental of residential accommodation and mortgage bond interest are exempt from VAT. As the rules are fairly complicated the following article should only be studied by persons operating such businesses.

QuickBooks does not cater for block 5 through to 9 and reccomend creating a manual VAT code instead.

The VAT will be assigned to block 4,1 Domestic Sales and filtered in Excel to arrive to exact amounts that will be entered on SARS E-filing.

A request has been made to include above mentioned blocks on QuickBooks VAT201 return.

(Formula examples of living costs in and outside of the 28 day period can be viewed on SARS website).