In a case recently made public, the South African Tax Court in Johannesburg dismissed an appeal involving a taxpayer's claim for input VAT deduction for food and accommodation provided for its temporary project employees.
Under South Africa's Value-Added Tax Act 1991, input VAT in respect of goods or services acquired for the purposes of entertainment is non-deductible. For the purpose of the Act, entertainment is defined as the provision of any food, beverages, accommodation, entertainment,…