The legal loophole to claim Vat on your clients' gifts
As you know, SARS sees gifts as entertainment and disallows input tax claims from the onset, right? Well... during the FSPBusiness Vat Masterclass I found a secret loophole that's totally legal. And no one's been using this. Why? Because no one knows about it yet!
The effect this loophole could have on businesses in South Africa is huge... And it's such an easy way to get more cash in your bank!
Read on to discover what this secret loophole is about claiming Vat on gifts you give your clients.
The 231 Vat tips that SARS wishes we didn't know
tips cost SARS thousands in Vat
refunds, claims and exemptions… And they give Vat
vendors the upper hand, making Vat
collections more of a challenge for the taxman! With tips on everything from insurance claims, to rental accommodation, company fringe benefits and tax
invoices, it's no wonder that the 231 Sizzling Vat Tips
book is a thorn in SARS' side!
SARS allows input tax on promotional gifts
SARS will allow input tax
on the acquisition of certain promotional gifts. For example, golf shirts, t-shirts, umbrellas, pens, calendars, desk pads, calculators etc. These are gifts.
So next time you give your clients gifts, rather opt to give them a promotional gift. Put your branding on the gifts and you can claim the input tax
Plus, when you give promotional gifts to your clients, you don't levy output tax
. This is because you don't charge or receive any payment for the supply!
Be sure to write it up in your books as 'promotional gifts'. So with the savings you'll get this festive season, you can afford to give your clients superior gifts every year.