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TaxTim says: 9 May 2013 at 12:47 How long do each of the students stay in the accommodation and what exactly is the company's role in the transaction? Are they a letting agent or do they own the property? |
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Terry says: 9 May 2013 at 14:09 The students stay at least 11 months, my company wants to provide the accounting services to the guys who are letting to students, so I am suppose to tell them how important it is to actually complete VAT retuns. I am not a letting agent nor property owner |
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TaxTim says: 10 May 2013 at 17:34 For letting of property to people who will occupy for longer than roughly 28 days this is seen as a type of commercial letting and VAT at 60% of the normal 14% is charges so 8.45%. This is purely for the actual rental income charged. For the management of letting fee this is different, a full 14% will be charge as these are for services rendered. Ordinarily VAT is not charged for residential letting, but where it is a company letting out in these type of instances then VAT does get charged. It is important to complete a VAT return if the turnover of the company is greater than R1m per annum. If that is the case then the company has a duty to register with SARS as a VAT Vendor and will need to complete bi-monthly VAT returns known as VAT201 forms. This will indicate the VAT charged on goods produced or services rendered to customers as output VAT, so the VAT collected on behalf of the customer as well as the input VAT, that is the VAT the company pays on the services and goods it buys and uses. After submitting each return the company will either have a VAT refund or VAT due to pay to SARS. It is very important to submit VAT returns as the company could incur penalties and interest on late payments if not submitted. |
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