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Can you claim input tax on club subscriptions? Our tax experts reveal the answer...

by , 04 June 2014
Input tax claims are a thorny issue. And our Vat experts get a lot of questions about them.

One question that always crops up is on whether or not Vat vendors can claim input tax on club subscriptions?

Read on to find out what Dee Bezuidenhout, an Independent Vat Consultant and editor of the Practical Vat Loose Leaf Service has to say about this, so you can comply and avoid SARS penalties.

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If you're not sure if you can claim input tax on club subscriptions, here's the answer

The simple answer is that there are times when SARS will let you claim input tax on club subscriptions and there are instances when it won't.

SARS will, for instance, allow you to claim the input tax you paid as a subscription to your professional organisation or trade governing body, as long as it relates to your business and its taxable supplies, says the Practical Vat Loose Leaf Service.

So if, for example, you're a fast food franchise, you can claim the input tax you spent to subscribe to franchise industry magazines that publicise trade events, advertise suppliers and provide tips and management strategies for running your business, says Bezuidenhout.

But when won't SARS let you claim input tax on club subscriptions?

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SARS won't allow you to claim the input tax on these six club subscriptions

Here are six examples of subscriptions SARS doesn't allow:

  1. Country club memberships
  2. Subscriptions to a soccer, rugby, cricket or other sports supporters' club;
  3. Amateur sporting associations like boxing governing bodies or gymnastics associations;
  4. Holiday clubs;
  5. Tea clubs; and
  6. Stokvel savings clubs.

There you have it: Now that you know whether or not you can claim input tax on club subscriptions, make sure you comply to avoid penalties.



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