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Here's how to claim input tax back on your staff's flu jabs!

by , 02 May 2017
Here's how to claim input tax back on your staff's flu jabs!It's not just your health and safety officer who needs to pay attention when there's a medical expense or emergency in the office.

Picture this...

Winter is flu season and Star Consulting didn't want its 500 staff members to spend time off sick. So it hired a mobile clinic to come to the office and give its staff flu injections.

The clinic charged R50 per injection, so the total amount came to R25 000 including VAT.

Luckily Star Consulting's financial manager, Penny, knew she could claim the VAT on this expense back from SARS as input tax.

You can do it too! Let me show you how...

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How to get money back for office medical emergencies you've paid for
 
All you have to do to get money back for medical expenses in your business is to fill in the amount you're claiming on your VAT return for the period. It's easy to work out.
 
In the above example, the total for the flu injections came to R25 000. Penny simply multiplied this by the allowable tax fraction of 14/114 to reach the VAT amount of R3070.18. This is the amount she'll include in her input claim on Star Consulting's next VAT return.
 
Remember, Penny must also keep a tax invoice to make this claim! 

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If you paid for it, you can claim back the VAT portion of your staff's anti-retroviral medication!
 
This same principle applies to any medical expenses your staff incurs where you foot the bill! 
 
For example, Rich Copper gold mine, purchases and pays R20 000 for anti-retroviral medication for its staff. The mine ensures it has a tax invoice from the supplier of the medication, applies the 14/114 tax fraction to the R20 000 and can claim the R2456.14 as input tax in the relevant VAT return. 

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Claim VAT on the medical supplies in your first aid box!
 
You can also claim the VAT paid on the contents of the office's first aid box, (like plasters) as input tax, so go ahead and make the claim.
 
There you have it!
 
All you need to do is keep record of your staff's medical expenses like medication or doctor's visits you've paid for on their behalf and the tax invoices. Then you can claim back the VAT from SARS.

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