Send us a simple VAT query and we'll answer it within 72 hours!
When you subscribe to the Practical Vat Loose Leaf service, you'll also have access to our Vat Helpdesk, where we answer your Vat questions by email.
Here is the advice our experts gave a subscriber, about Vat deductions:
Question
Can we deduct Vat on the hospitality suite we rent to schmooze clients, if I can prove that it generates orders for our business?
Our company is renting a hospitality suite at Loftus, as part of our marketing efforts. We only invite clients to this suite, to watch rugby. Besides this rental, I don't incur any other marketing expenses.
I can also prove that I've received business orders from the clients who we've invited to this suite.
So can I claim the Vat on the rental payment?
Answer
Nope! A vendor isn't allowed to claim the Vat incurred on costs relating to entertainment. This includes all expenses relating to a hospitality suite.
Even though business may be discussed in the Loftus suite, SARS can't establish whether the main purpose is business or private enjoyment.
Other questions answered about employees tax in the Practical Vat Loose Leaf Service:
- Our customer refuses to pay the Vat on the insurance we paid on their behalf. Are they right?
- What are the Vat implications when leasing equipment?
- We want to buy a 10-seater kombi, to transport clients to training sessions. Can we claim Vat on this purchase?
- How do travel agents handle Vat on overseas travel packages?
