Is student accommodation VAT exempt?

The supply of commercial accommodation is not VAT exempt. … The answer to that question has a significant commercial impact: if the rental is subject to VAT, then students must pay an additional amount for their accommodation, unless the owner absorbs the amount of VAT.

Is there VAT on student accommodation?

The tribunal agreed student accommodation could be treated as ‘dwellings’ for VAT purposes. It dismissed HMRC’s argument that a planning condition which restricted occupation to students of named universities prevented the accommodation from being dwellings for VAT purposes.

Is residential accommodation exempt from VAT?

There is no VAT on residential property. This is an exempt supply in terms of the VAT Act. However, one needs to be careful and correctly distinguish between residential and commercial letting.

What class is student accommodation?

Use class C – Accomodation

Class C1 is use as a hotel, boarding or guest house or as a hostel where, in each case, no significant element of care is provided. Class C2 is use as provision of residential accommodation and care to people in need of care (other than a use within class C3 – dwelling houses).

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How much does it cost to build a student accommodation in South Africa?

Current pricing to build student housing on campus is estimated at R320 000 per bed which can increase to R550 000 when taking land costs into account.

Is student accommodation classed as a dwelling?

If the property is residential accommodation to be used by students it is considered a “dwelling” and where more than one dwelling is purchased, multiple dwelling relief would be available.

Is VAT payable on holiday accommodation?

If you supply holiday accommodation, or a site for such accommodation, you must account for VAT at either the standard rate (or the temporary reduced rate) on any charges that you make regardless of the length of occupation or description of the charges.

Does hotel accommodation have VAT?

Yes, if you are a VAT-registered business delivering products or services in hospitality, hotel and holiday accommodation or admission to certain attractions.

Can you claim VAT on hotel accommodation South Africa?

The distinction between commercial accommodation and a dwelling is essential, because the supply of commercial accommodation is subject to VAT at the standard rate, whereas the letting and hiring of a dwelling is exempt from VAT.

What are B1 B2 and B8 uses?

B2 (General Industrial) Use for industrial process other than one falling within class B1 (excluding incineration purposes, chemical treatment or landfill or hazardous waste). B1; B8. B8 (Storage and Distribution) This class includes open air storage.

What is B1 usage?

Class B1.

being a use which can be carried out in any residential area without detriment to the amenity of that area by reason of noise, vibration, smell, fumes, smoke, soot, ash, dust or grit.

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What is Class C planning?

Planning Use Class C3 includes dwelling houses, flats, apartments etc (whether or not as main residence) by: A single person or by people to be regarded as forming a single household.

Is student accommodation a good investment in South Africa?

It is important to note that the demand for student accommodation is much higher than the actual supply, which is good news for investors as this leaves a gap in the market. Some of the most lucrative areas in South Africa for investors to consider include Stellenbosch, Grahamstown, Rondebosch, Cape Town and Bellville.

Is it worth investing in student property?

* Higher yields. Students typically pay significantly more rents than other tenants and property can be used more intensively. (Often yields are much more, possibly up to 20% for a well run shared student house.) * Good prospects for price appreciation in future, especially if sold as a going concern in future.

How much is it to build student accommodation?

Current pricing to build student housing on campus is estimated at R320 000 per bed, which can increase to R550 000 when taking land costs into account.