Different Goods and Services - and their VAT Rate

Whereas the standard rate for all VAT transaction is 17% of the total value consumed, there are some goods and services that apply a reduce rate of VAT which accounts for 10% as stated by the VAT Act in section (26) (1) (d). These include:

1. accommodation services by a hotel, guest house, inn, or similar establishment; and
2. accommodation services in an apartment or room with utilities or furnishings provided by the lessor, but not including services to a renter in a private home;
3. the value of supply by a tour operator as defined in regulations made under this Act;
4. the value of supply by a restaurant as defined in regulations made under this Act. There are also specific VAT rules that apply to certain trades that affect how you account for VAT, and how much VAT you must pay and can reclaim.