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Thread: Rates and VAt on Rental

  1. #1
    Bronze Member Alice Rain's Avatar
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    Rates and VAt on Rental

    Not sure if I am in the right forum but would like to know if one is living in a caravan and pays rental [basically for the site] is VAT supposed to be added to the bill as well as rates? I just don't recall ever paying VAT on any rental when I was in an apartment. The rates I really don't know about?

    Thanks a lot

    Alice

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    Platinum Member Mike C's Avatar
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    7.2 LETTING AND SUB-LETTING OF DWELLINGS

    VAT is not levied on the rent charged by a lessor to a lessee for the supply of a dwelling under a lease agreement. This rule also applies to employee housing supplied by an employer, whether a rental is charged or not. A “dwelling” is basically defined as a building or a part of a building which is used, or intended to be used, as the residence of a natural person, and includes any fixtures and fittings enjoyed with the supply of the dwelling.

    The definition excludes the supply of “commercial accommodation”.

    Where a number of residential dwelling units are let to a person who in turn sub-lets them to other persons, as long as the nature of the supply under both the main lease and the sub-leases constitutes the supply of a “dwelling” (or dwellings), the exemption in terms of section 12(c) will apply.
    An education isn't how much you have committed to memory, or even how much you know. It's being able to differentiate between what you do know and what you don't. - Anatole France

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    dellatjie (08-Aug-14)

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    Site Caretaker Dave A's Avatar
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    The problem in this instance might be the fee is for the site (as opposed to a residential dwelling).
    The trouble with opportunity is it normally comes dressed up as work.

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    Platinum Member Mike C's Avatar
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    And although we know that a caravan is used for residence ... is it considered a building?
    An education isn't how much you have committed to memory, or even how much you know. It's being able to differentiate between what you do know and what you don't. - Anatole France

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    Bronze Member Alice Rain's Avatar
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    Thanks for the input, much appreciated. I'll just keep paying whatever they say, like everyone else. One gentleman has been fighting with them for over two years while dealing with Council and now he's meeting with the Rental Tribunal but sadly this beautiful park is going to the dogs as the lease holders are fully qualified as the most incompetent, rude, money hungry people in every single respect of running a park. The majority of us just pay and ignore everything as it's too stressful dealing with them. We'll close this topic! Thanks again! Regards Alice

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    Email problem JohnV's Avatar
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    Quote Originally Posted by Mike C View Post
    7.2 LETTING AND SUB-LETTING OF DWELLINGS

    VAT is not levied on the rent charged by a lessor to a lessee for the supply of a dwelling under a lease agreement. This rule also applies to employee housing supplied by an employer, whether a rental is charged or not. A “dwelling” is basically defined as a building or a part of a building which is used, or intended to be used, as the residence of a natural person, and includes any fixtures and fittings enjoyed with the supply of the dwelling.

    The definition excludes the supply of “commercial accommodation”.

    Where a number of residential dwelling units are let to a person who in turn sub-lets them to other persons, as long as the nature of the supply under both the main lease and the sub-leases constitutes the supply of a “dwelling” (or dwellings), the exemption in terms of section 12(c) will apply.
    very helpful thanks
    "Why do we never get an answer, when we're knocking at the door
    With a thousand million questions, about hate and death and war?"

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