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Can you claim input tax on company entertainment?

by , 20 August 2013
There are certain entertainment expenses SARS won't allow you to claim input tax on. Keep reading to find out what they are.

Can you claim input tax on company entertainment?

Throwing a party at the office can be lots of fun. Everyone likes a good party and a break from work. But it could be costing you more than you think. But that's fine because you can simply claim input tax from SARS. Right? Wrong! There are certain entertainment expenses SARS won't allow you to claim input tax on. Keep reading to find out what they are.

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The input tax claims that SARS won't accept


A vendor can't claim input tax on goods or services that are for entertainment purposes. (Vat Act section 17(2) (a)). So if you're trying to claim from SARS on stuff purely for entertainment, you're not going to get any money from SARS.

Let's look at some common input tax claims that SARS classifies as entertainment and won't allow.
 

  1. Claims on staff refreshments (such as tea, coffee or other beverage and snacks);
  2. Claims on food and ingredients purchased to provide meals to staff, clients and business associates;
  3. Claims on business lunches and dinners;
  4. Claims on catering services  for staff canteens;
  5. Claims on annual functions – including venue costs, entertainment  costs, staff costs etc;
  6. Claims on foods, beverages, entertainment and services purchased for marketing promotions and events
  7. Claims on entertainment expenses for incurred for customers at restaurants, bars and night clubs.

Wondering what items you can claim input tax on? Get the input tax 101 report and find out the seven items you can claim input tax on. Click here to order your copy.

I hope you after reading this; you will start saving on unnecessary extra costs at the office.

Until next time,



Shevona Ponnusamy
Managing Editor, Practical Vat Loose Leaf

Ps. I hope these tips came in handy. For a full breakdown on input tax claims order you Practical Vat Loose Leaf. Hurry, click here for your copy today.

 

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