The issue of claiming VAT on fees and disbursements in your bill depends on the question whether you will be out of pocket or not.

The scenario is as follows:
A. You are a VAT vendor, you receive a tax invoice for R100-00 +VAT, you pay the VAT and claim it back, you are out of pocket with R100-00 – you claim the R100-00 in the bill, it is taxed and R100-00 is refunded to you (or a % thereof) – it is not income for which you have supplied goods or services, you have not issued a tax invoice so you do not have to declare it and pay any VAT on it to SARS. The unsuccessful litigant pays R100-00 in terms of the taxed bill - no claim for VAT against SARS. SARS received R14-00 from the supplier of goods or services and paid it back to you – not out of pocket.

B. You are not a VAT vendor, you receive a tax invoice for R100-00 +VAT, you pay the VAT but cannot claim it back, you are out of pocket with R114-00 – you claim the R100-00 + VAT in the bill, it is taxed and R100-00 + VAT is refunded to you (or a % thereof) – it is not income for which you have supplied goods or services, you have not issued a tax invoice so you do not have to declare it and pay any VAT on it to SARS, you receive no benefit, your out of pocket expenses (R100-00 + VAT ) or a portion thereof is merely refunded. The unsuccessful litigant pays R114-00 in terms of the taxed bill but has no claim for VAT against SARS, because there is no tax invoice, no goods sold or services rendered. SARS received R14-00 from the supplier or goods and/or services – not out of pocket.