Client meals and entertainment
Who was there, and why, matters more than the amount.
If you're allowed to claim business costs, a meal with a client or prospect can be deducted. SARS will ask what the business reason was, so write down:
- Who was there, and which company they're from
- What you discussed or why you met
- The slip
Your own lunch alone isn't entertainment, even on a work day. Neither is a meal with friends where business came up.
VAT vendors can't claim the VAT on entertainment, even with a valid tax invoice.