Are Coffee Machines Tax Deductible?

Being a business owner has enough of its own innate stresses, whether it be securing new clients, keeping current ones happy – and of course cash flow. Coffee machines are considered a luxury in the eyes of many a business owner – but did you know that you could claim tax benefits on the rental of your coffee machine? As always, there are conditions to meet when wanting to claim a tax benefit from a coffee machine – which we’ll be explaining now:

Can I Claim a Tax Rebate on my Coffee Machine?

Generally speaking, you can make coffee tax-deductible if you’re spending so little on it that it’s ‘administratively impracticable’ to account for it. Yes, it’s kind of a gray area, and it’s one you should navigate carefully.

Also, if you rent a coffee maker and supplies, and they are only used at work, then this should be tax deductible.

So, how is coffee for the office tax-deductible?

On the whole, under normal circumstances, you can claim things like tea bags or coffee as tax deductible. As long as the machine is rented – and has not been bought (i.e. – not a company asset) – you can enjoy a tax rebate on that machine.

To qualify, however, you must be able to tick these boxes:

• the expense is relatively small
• coffee is provided by the employer to workers
• the coffee is provided to promote health, contentment, goodwill, or efficiency of workers

It’s also worth noting, that – as a small business – it may be possible to deduct some of the costs of providing an office coffee bar – if coffee, other beverages, and snacks for employees are provided for staff to consume at work, they are generally tax deductible.

How Does a Tax Deduction Work For a Coffee Machine?

Before we all get a little too excited, it’s worth noting that in South Africa, coffee tax deductions will work in the following way:

If you made R 1 000.00 profit for the year, and R 100.00 of that was spent on the rental of a coffee machine that Is used strictly within the office, for business purposed, you may now calculate your tax deduction in the following way:

R 1000.00 profit – R 100.00 rental for the year leaves you with R 900.00. You will only be taxed on the R 900.00 profit you made, as the coffee machine has been deducted already.

Makes us wonder why every company is not enjoying the perks of having a rented office coffee machine and enjoying the benefits of tax deductions thereof!

Want to get more info on a coffee machine that you can enjoy in your own office? Click here to get in touch today!

• Any errors or omissions are not intentional and are not the onus of the company or publisher of this article.