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VAT Claim For Businesses

VAT Claim

VAT Claims for businesses – A brief VAT Refund Guide

Vat Claim

VAT Claims for Businesses in South Africa.

There is nothing more exciting than to see your own business perform well and turnover increase.. However, one thing you need to be cognizant of is that as you make more money, you will be liable for VAT registration. Therefore, you will be able to reclaim VAT.

Who Needs To Register for Vat?

If business sales exceed R 1 000 000 in a 12 month period, you need to register as a VAT vendor. However, you must register for income tax before. Furthermore, should turnover be less than R1 million, it will be beneficial to voluntary register for VAT. Thus, you can claim VAT back from certain expenses and purchases.

VAT CLAIM – WHAT EXPENSES CAN’T I CLAIM?

Expenses that you cannot claim :

  • Travel expenses incurred for non business purposes
  • Flights (as you pay airport duty taxes)
  • Personal expenses
  • Staff welfare
  • Fuel
  • Entertainment,

Expenses incurred for business purposes (allowable expenses) the person / company that provides the services or goods must be a registered VAT vendor. Therefore, if you make use of the services of a person that is not VAT registered, VAT cannot be claimed on that expense.

When thinking about VAT you can claim, first ask :

  • Is the supplier registered for VAT?
  • Is the expense required to earn income for the company?

Thus, you cannot claim VAT on expenses like entertainment, staff welfare etc. These expenses are not “required” to earn income for the company.

Common input tax claims that SARS classifies as “entertainment” and won’t allow VAT claim:

  • Entertainment expenses for customers at restaurants, bars and night clubs.
  • Annual functions – including venue costs, food, beverages, entertainment  costs, staff costs etc.
  • Staff refreshments (such as tea, coffee or other beverage and snacks).
  • Food and ingredients purchased to provide meals to staff, clients and business associates.
  • Business lunches and dinners.
  • Catering services.

Registering For VAT Through TAXLEADERS

By selecting Taxleaders to handle your VAT registrations and other VAT enquiries, you free up time to concentrate on core business functions. VAT claims and registrations are simpler with VAT specialists and Tax specialists. Additionally, you benefit from the expert advice regarding VAT compliance. 

At Taxleaders, we offer tax advice and services to individuals, CC’s, PTY’s and sole proprietors. Our fees are highly competitive and our professionalism and service is unmatched. Listed below are the following tax services that we provide:

  • Annual Individual and Company Tax Returns
  • Capital Gains Taxes
  • Emigration Tax Clearance Applications
  • Import and Export License Applications
  • Income Tax Registrations
  • Provisional Tax (IRP6)
  • Tax Advice and Calculations (structuring)
  • Tax Clearances for Tenders and Good Standing
  • Tax Queries at SARS
  • Travel Allowance Calculations
  • Vat Registrations

Taxleaders insist upon the solid standards of excellence upon which our accounting and tax company continues to succeed. Additionally, we believe in upholding solid values and in earning the trust and respect of our clients.

We treat each of our clients accounting and tax affairs as our own, knowing that if we help grow your business, we will also help grow our own. Our vision is becoming an accounting and tax company that people will believe in as a strategic partner to their business and future financial wellbeing.

Contact us for a competitive quote on VAT claim and other VAT queries today.

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