VATable Items

[Mike C]

Our company is registered for VAT. Some issues are very clear as to what we can claim and what we can not claim.

Some little things get to me, however. If you buy some stationery for the company at GAME stores can the company claim VAT? Strictly speaking one does not have a receipt with the company's name and vat number specified, so if one has an audit would that be an issue?

The other matter is that the boss often leaves his vehicle parked at the airport when flying out on company business. This can add up to quite a few hundred rand. Can VAT be claimed on this?

The third issue is that of promotional gifts. I read in another thread that VAT can be claimed on these, but am not quite sure - and when in doubt, I usually don't.

Can anyone give me a definitive answer on these matters?

[Dave A]

The requirement for the purchaser's company name and VAT number appearing on the Tax Invoice only applies to invoices over R3000.00

[Mike C]

The requirement for the purchaser's company name and VAT number appearing on the Tax Invoice only applies to invoices over R3000.00

Thanks for that Dave - most appreciated!

[Christel]

Our company is registered for VAT. Some issues are very clear as to what we can claim and what we can not claim.


The third issue is that of promotional gifts. I read in another thread that VAT can be claimed on these, but am not quite sure - and when in doubt, I usually don't.

Can anyone give me a definitive answer on these matters?

Hi Mike,
We are subscribed the the Practival VAT handbooks and I get daily emails from them... this is one dealing with promotional gifts - hope it helps you:


How to get cash back for promotional gifts you buy for customers

Our Vat Helpdesk expert explains that you can claim back the Vat portion of promotional gifts and presents you’ve bought for customers as input tax on your next Vat return. But remember, you can only do this if you have a tax invoice from the supplier as proof of the purchase.

This includes many of the gifts you may be giving your clients, such as:
· Branded pens you hand out to your seminar attendees;
· Umbrellas and caps featuring your logo that you give out at golf days; and
· Year-end presents you give to clients, like coffee table books.

But be careful, you can’t claim back for everything…

--------------------------------------

4 Gifts you can’t claim Vat back on

If you’re giving your clients food or refreshments as a year-end gift and you’re not in the restaurant business, you can’t claim the VAT back as input tax. This is seen as entertainment and includes common ‘thank you’ and birthday gifts like chocolate, wine or whisky. Tickets to sporting events are also seen as entertainment, so SARS won’t approve your claim. So you need to be careful when choosing gifts for your customers if you want to get cash back!

[kleva]

ChristelACS - Wow, that item no 4 is a shock to me. I used to claim those when I was registered (deregistered for VAT 2+ years ago)... Must keep that one in mind if we switch back later. Thanks.

[Mike C]

Thanks Christel - that is most helpful.