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Input VAT on accommodation, car rental and flights

11 November 2014   (1 Comments)
Posted by: Author: SAIT Technical
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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 Tax Act.

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”.   

Disclaimer: Nothing in this query and answer should be construed as constituting tax advice or a tax opinion. An expert should be consulted for advice based on the facts and circumstances of each transaction/case. Even though great care has been taken to ensure the accuracy of the answer, SAIT do not accept any responsibility for consequences of decisions taken based on this query and answer. It remains your own responsibility to consult the relevant primary resources when taking a decision.


Linda P. Nyathikazi says...
Posted 09 December 2015
I would like to find out if there's any specification regarding range on which one needs to consider when claiming input tax relating to accommodation, like certain distance from usual place of residence?


Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.


The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.

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