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.
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
Simple as that.