Did you know that local flights carry Vat at 14%?
This means you're allowed to claim input tax on costs attached to local flights. Also 'subject to Vat is airport tax, which is a passenger service charge payable to the Airports Company South Africa and any charge by a travel agent on local flights,' says the Practical Vat Loose Leaf.
But before you claim Vat back on these costs, there are certain requirements you must meet.
Use this checklist to guarantee your input tax claim won't be rejected
Ensure that a valid tax invoice was issued by your travel agent.
The tax invoice must indicate that it is Vat inclusive and must show the travel agent's Vat registration number.
The flight must begin and end in South Africa.
Ensure that you claim the Vat charged on the travel agent's fee, the ticket price and any penalties you may incur.
Remember, 'you can claim input tax which you previously haven't claimed within a period of five years from the tax period in which you were first entitled to claim it,' advises the Loose Leaf. Just ensure you have the tax invoices and calculations available should SARS decide to audit you.
You could be missing out on 19 input tax VAT savings...
You're a business finance savvy individual, so I'm sure you claim input tax credits back on goods and services you supply or buy...
But are you 100% sure you're claiming all the input tax credits back available to you?
For example, are you sure you've claimed input tax on these five office expenses?
Plants for the office
Flowers sent to sick staff
Stationary orders for the office
Let's say, last month you spent R2 000 on plants for the office, R329.25 on flowers sent to a sick member of staff, R25 000 on medical bills for your staff, R70 567 on promotional gifts and R3 000 on stationary orders for the office...
If you calculate all five these office expenses together, you could slash R12 390.84 off your VAT bill in one month alone!
Now imagine if you saved that much EVERY month!
And that's just the start!