vat input or not

[flaker]

I recently spent 2 nights away on business. have names of businesses visited etc.


I would put this through this in the company books as travelling expense.

Question
1) the airline issues an e-ticket., giving name of passenger only. Can vat be claimed?

2) the hotel issues an invoice made to company. can vat be claimed?

3) What about the meal slips?

Thank you

[Justloadit]

I stand to be corrected, but I seem to remember if the accommodation and expenses are more than 30Km from your base, you can claim VAT, as this expense was part of business activities.
Off course always keep very good records to substantiate the claim.

[CLIVE-TRIANGLE]

Hi Flaker, I sent you a detailed PM, but in a nutshell:

the airline issues an e-ticket., giving name of passenger only. Can vat be claimed?

You need a tax invoice.

the hotel issues an invoice made to company. can vat be claimed?

Yes

What about the meal slips?

As long as they are your and your staff's meals, yes. If you entertained the client, then no.

[kaybeach007]

Hi Clive. May I ask why the cost of entertaining the client is not VAT deductible?

[CLIVE-TRIANGLE]

Section (17)(2)(a) of the VAT Act specifically denies vat inputs on all expenses to the extent that they are entertainment in nature.

[Justloadit]

What about the meal slips?

As long as they are your and your staff's meals, yes. If you entertained the client, then no.

I was under the impression the out of town rule applied. I stand to be corrected then

[kaybeach007]

So you would capture the entertainment as an expense, but with a zero VAT rating?

[CLIVE-TRIANGLE]

I was under the impression the out of town rule applied. I stand to be corrected then

I'm not aware of such a requirement. Travel and subsistence are closely related and the principle is that of an expense incurred in the production of income, so elements of both might apply in a less than a 30km scenario, but in truth I don't know.

So you would capture the entertainment as an expense, but with a zero VAT rating?

Yes, that's right.