Travel lots for business? You're not alone. While you can't claim your international travel expenses back from SARS as Vat is charged at the zero-rate for these, you CAN claim back your local business travel expenses. But you'll need to make sure you have the right information listed on your travel tax invoice to do so...
In 2006, Ireland's Ryanair made an unsuccessful bid to take over Aer Lingus.
Now, it's lost out again – this time on a Vat refund claim of €770,700 for services related to the Aer Lingus bid, says The IrishTimes
And you'll lose out too if you try to claim back the Vat from an international air ticket like one on Ryanair, as Vat is charged at the zero rate for international air travel, says FSP Business
But that doesn't mean you can't claim back the Vat when you buy a local business air ticket.
In fact, according to The Practical Vat Loose Leaf
, all flights that begin and end within South African borders are subject to Vat at the standard rate.
But don't forget that airport tax, which is actually a passenger service charge payable to the Airports Company South Africa, and any charge by a travel agent on local flights, are also subject to Vat.
Here's what you'll need to claim the Vat from your local business travel back from SARS!
To make this claim with SARS, all you'll need to do is get your travel agent to issue a valid tax invoice including charges plus Vat on all supplies made by other vendors, meaning the airport tax and booking fee charged.
Then, make sure your accountant keeps the travel agent's tax invoice for five years to meet SARS' record-keeping requirements.
Another benefit of getting a detailed tax invoice each time you travel locally for business…
This way, you'll also be able to claim any input tax that you haven't previously claimed five years from the tax period in which you were first entitled to claim it.
All you need to do is add up all the Vat not previously claimed and claim it as input tax on your next Vat return.
Simple as that.