Rates and VAt on Rental

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  • Alice Rain
    Bronze Member

    • Jan 2014
    • 132

    #1

    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
  • Mike C
    Diamond Member

    • Apr 2012
    • 2891

    #2
    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.
    No act of kindness, no matter how small, is ever wasted. - Aesop "The Lion and the Mouse"

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    • Dave A
      Site Caretaker

      • May 2006
      • 22803

      #3
      The problem in this instance might be the fee is for the site (as opposed to a residential dwelling).
      Participation is voluntary.

      Alcocks Electrical Services | Alcocks Pest Control & Entomological Services | Alcocks Hygiene Services

      Comment

      • Mike C
        Diamond Member

        • Apr 2012
        • 2891

        #4
        And although we know that a caravan is used for residence ... is it considered a building?
        No act of kindness, no matter how small, is ever wasted. - Aesop "The Lion and the Mouse"

        Comment

        • Alice Rain
          Bronze Member

          • Jan 2014
          • 132

          #5
          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

          Comment

          • JohnV
            Email problem

            • Sep 2014
            • 64

            #6
            Originally posted by Mike C
            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?"

            Comment

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