Input VAT

Question 1

Input Tax

Answer 1

Only clai if you have the following neccessary documentation:
1. VAT Output charged on goods/services supplied to the Vendor/Imports
2. Sale of 2nd hand goods to vendor by resident that is not a taxable supply. 15/115 x lesser of: OMV or Consideration

Question 2

Input Tax denied s17(2): Entertainment Exceptions

Answer 2

• Vendors in business of entertainment and that charges a price that at least covers the MV or costs
• Vendors in business of entertainment to exisiting clients for bona fide promotional purposes
• Vendors operating taxable passenger transport services & supplies entertainment
• Employee required to spend at least one night away from usual place of residence, for work/business purposes

Question 3

Input Tax denied s17(2): Club membership fees & subscriptions Exceptions

Answer 3

Professional fees e.g SAIPA fees

Question 4

Input Tax denied s17(2): Motor car Exceptions

Answer 4

• Vehicle transaporting > 16
• Car dealers or Car-hire businesses
• Regulalry purchase motor for competition prize

Question 5

Input TAx denied s17(2): Entertainment

Answer 5

Food, beverages, accomodation and amusement

Question 6

Input Tax denied s17(2): Motor Car

Answer 6

Motor car >= 3 wheels & >50% for transporting services

Question 7

Deemed input tax: Second-hand goods

Answer 7

A notional input tax can be claimed when second-hand goods are acquired from a non-vendor (or not a taxable supply) who is a resident of SA. Second-hand goods exclude animals & gold coins

15/115 x (Lower of cost or OMV)(Limited to Payment)