
Originally Posted by
Mpholo and Associates
Hi Kavesh,
I would claim the input VAT. Reason being VAT is an indirect tax levied on the supply of goods and services.
Office expenses are section11(a) expenses (they are expenses incurred in the normal day-to-day running of the business and are related to the operations of the business)
The invoice for the purchase of Office Teas and Coffees does not have to meet the full requirements of a valid VAT invoice.
I don't think Pick n Pay, or Woolworths will have the time to issue me out with an invoice that meets the requirements of a full VAT invoice, so I will be happy with an abridged VAT invoice, provided that the amount on the invoice does not exceed R5,000.00, and the transaction went through the business account.
I also advise my clients not to use physical petty-cash for the purchase of these expenses. It just makes the accounting process long.
Rather give them a bank card that is linked to the business account. Put a fixed amount in that account and ask them to make office consumables from that account, then they must do reconciliations on that card weekly.
Regards,
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