Input VAT on accommodation, car rental and flights
11 November 2014
Posted by: Author: SAIT Technical
Author: SAIT Technical
Q: Can you claim VAT on
accommodation, car rental and flights? My view is no on the car rental , yes on
flights and I’m not sure on the accommodation.
A: You are correct that the input tax on the supply
of the car (rental) will be denied in terms section 17(2)(c) of the Value-Added
The deduction in respect of accommodation is not prohibited
in terms of section 17(2)(a)(ii). The prohibition does not apply where
"such goods or services are acquired by the vendor for the consumption or
enjoyment by that vendor (including, where the vendor is a partnership, a
member of such partnership), an employee, office holder of such vendor, or a
self-employed natural person in respect of a meal, refreshment or
accommodation, in respect of any night that such vendor or member is by reason
of the vendor’s enterprise or, in the case of such employee, office holder or
self-employed natural person, he or she is by reason of the duties of his or
her employment, office or contractual relationship, obliged to spend away from
his or her usual place of residence and from his or her usual working-place.
For the purposes of this section, the term "self-employed
natural person” shall mean a person to whom an amount is paid or is payable in
the course of any trade carried on by him or her independently of the person by
whom such amount is paid or payable and of the person to whom the services have
been or are to be rendered, as contemplated in the proviso to paragraph (ii) of
the exclusions to the definition of "remuneration” in paragraph 1 of the Fourth
Schedule to the Income Tax Act”.
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