VAT and Entertainment


The input tax claims that SARS won't accept

A vendor can't claim input tax on goods or services that are for entertainment purposes. (Vat Act section 17(2) (a)). So if you're trying to claim from SARS on stuff purely for entertainment, you're not going to get any money from SARS.

Let's look at some common input tax claims that SARS classifies as entertainment and won't allow. 

  1. Claims on staff refreshments (such as tea, coffee or other beverage and snacks);
  2. Claims on food and ingredients purchased to provide meals to staff, clients and business associates;
  3. Claims on business lunches and dinners;
  4. Claims on catering services  for staff canteens;
  5. Claims on annual functions – including venue costs, entertainment  costs, staff costs etc;
  6. Claims on foods, beverages, entertainment and services purchased for marketing promotions and events
  7. Claims on entertainment expenses for incurred for customers at restaurants, bars and night clubs.

Wondering what items you can claim input tax on? Get the input tax 101 report and find out the seven items you can claim input tax on.

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