Just because it has VAT Input…. 29/12/2016

We just took over a client that puts through all his contributions for Retirement Annuities, Medical Aid etc through the companies books. He takes them as a salary and pays PAYE / Provisional tax on these values inclusive of VAT. So can the company claim the VAT?

Transactions subject to Exempt supplies VAT:

No VAT can be claimed on purchases (even if there is VAT on these expenses).

Financial services such as:

  • The lending of money
  • Provision of long-term insurance
  • Provision of retirement- and medical aid benefits
  • Exchange of currency
  • The issue of letters of credit by banks
  • Issue of debt security or unit trusts
  • Sale of futures contracts
  • Activities of any fund promoting horse-racing
  • Supplies by associations not for gain (example: cake sales by welfare organisations)
  • Letting of residential accommodation (place of residence for natural persons – house, flat or apartment for longer than 45 days continuously)
  • Levies paid to Body Corporates and Share Block Companies (special levies are VAT-able, normal levies are not VAT-able)
  • Transportation of passengers
  • Education

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