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.
Without this one Vat document, Your business could lose out On R1.07 million!
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.
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I hope you after reading this; you will start saving on unnecessary extra costs at the office.
Until next time,
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.