If you the type of event you are hosting requires that you pay VAT on revenues, then the finance team will claim-back VAT on all the event’s expenses, up until the point that all the VAT paid has been claimed back.
In practice, when we process a supplier invoice the VAT amount on the invoice is debited to a VAT balance sheet on the central SA ledger and the amount before VAT is debited to your club account.
If we are unable to reclaim VAT the VAT amount is DEBITED back to your club account. This is done at the end of the VAT quarter and after all VAT is debited back to the club accounts the remaining balance on the VAT balance sheet is reclaimed. These refunds or charges will show up in your club’s transaction report and will be marked with “VAT RETURN” under the transaction reference column.
We cannot claim more VAT back on expenses than what you paid on your revenues
Please note that in order to claim back VAT, bills and invoices submitted need to clearly show the VAT paid and have the company’s VAT registration number present on the bill/invoice.