According to SARS, domestic goods and services may be charged separately or included in an all-inclusive price for accommodation. If an all-inclusive price is charged and the guest stays more than 28 days, only 60% of that charge is subject to VAT at the standard rate. For stays of 28 days or less, the entire 100% of the all-inclusive charge is subject to VAT at the standard rate.

In practice, this means:

• Stays longer than 28 days → VAT should be charged at 9% (60% of 15%).

• Stays 28 days or less → VAT should be charged at the standard 15%.

How This Works in RoomRaccoon

If you manage long stay reservations, you’ll need to create separate rate plans for each category. This applies to direct bookings and OTA bookings if you want consistent VAT handling.

If you use Xero, you can assign a separate ledger in your accounting settings for this VAT overwrite.

Steps to set this up in your account

1. Go to "My property".

2. In the category, select "New rate".

3. Set up the rate as normal (derived or not).

4. Tick "Overwrite VAT" and enter 9%.

5. Set minimum stay to 28 days; maximum stay can match your property’s rules.

6. Click "Save".

7. Repeat as needed for other categories.

By following these steps, you’ll ensure your VAT charges comply with SARS rules for long stays while keeping your rates consistent across all booking channels.