VAT: some of the requirements – part 2

Content provided by a guest contributor.

1. Car hire

If you hire a car for business purposes, then you are entitled to claim the VAT on the insurance that you are required to take out on the vehicle. Be sure to get an invoice that lists the insurance, or itemizes it separately, this will make it much easier for record keeping purposes.

2. Medical expenses

Should one of your staff fall ill at work or get hurt in an accident whilst they are at work and the medical expenses are paid by the company, the VAT on these medical bills can also be claimed back.

3. Parking fees

Do you know how much we spend on parking in the malls and in office park complexes – it’s frightening! Parking fees, particularly fees that are paid, while working, that have VAT charged on them (in other words Tax Invoice should appear, somewhere on  the receipt, and yes you have to have a receipt to claim the VAT back), can be claimed back.

Most malls that have those ‘pay machines’ actually give out receipts – be sure to request and submit those receipts. Obviously monies that are paid out to the ‘car guards’ cannot have the VAT claimed for, but you can of course, claim them as a business expense as long as they are “reasonable” and it is always better to be able to substantiate them.  I use my diary as a guide to when I paid the car guards.

4. Flowers and Postage

When you send wreaths and/or flowers to staff and/or customers who have had a death or bereavement in their families, you can claim the VAT back. 

In terms of postage stamps and postage, this too, the VAT portion can be claimed back provided of course that the postage is being used for business purposes.

5. Art

Artwork, in the form of carpets or paintings and pictures or even plants, can have the VAT claimed for, provided of course that they were actually purchased for the office. Here’s the thing though – they have to physically be in the office.  Understand that if they are not in the office and the VAT man comes to visit, you could be in the deep brown smelly stuff.

In part three we will have a look at some additional expenses that you can claim the VAT back on.

The content in this article is provided by Nikki Viljoen, an Internal Auditor and Business Administration Specialist, and the owner of Viljoen Consulting.

About Viljoen Consulting:

Viljoen Consulting is a specialist Internal Audit company. It was established to provide access to Internal Audit functions, primarily targeting the SMME market, that were previously only enjoyed by large companies and corporations who could afford an Internal Audit Division. Viljoen Consulting recognizes the absolute necessity for SMMEs to implement best practices in respect of policies, procedures, flows, controls and other preventative practices, thereby protecting the company from possible fraud and other related losses.

Viljoen Consulting‘s services include bookkeeping, internal auditing, small business start-up, business sophistication assessments, and legal compliance.

For more information, contact:

Tel: 083 702 8849




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