Input tax is the Vat you pay your suppliers in the course of carrying on your business or enterprise. While you're allowed to claim back deductions for certain business transactions, there are also transactions SARS won't allow you to claim back input tax on.
Do you know what they are?
SARS won't allow you to claim input tax for these ten business transactions
The Practical Vat Loose Leaf Service outlines ten expenses you CAN'T claim back input tax on:
#1: Staff refreshments like tea, coffee and other beverages and snacks.
#2: Food or other ingredients to provide meals to staff, clients and even business associates, business lunches and dinners.
#3: Catering services for staff canteens and dining rooms, if you subsidise the cost of the meals.
#4: Any equipment and utensils used in your staff or canteen kitchens.
#5: Furniture for your company canteen or dining room.
#6: Annual Christmas function, including the cost of the meals, venue hire, cost of serving staff and the cost of a band, entertainer or disco.
#7: Hosting or sponsoring entertainment events like corporate golf days for customers and clients.
#8: The supply of beverages, meals, snacks, entertainment or any form of hospitality extended at marketing or promotional events, such as product launches.
#9: Entertainment expenses incurred for customers and clients at restaurants, bars and nightclubs.
#10: Capital purchases made for the purposes of entertaining clients or promoting the company, such as hospitality suites at sporting events, holiday homes, yachts or private aircraft.
Well there you have it. Stay compliant and don't claim input tax on these business transactions. SARS won't allow them.