Commission Earner - Claim Backs

[Dolby]

AS some of you know, I've been whacked with tax recently - I'm not even sure it's all right and I've done my (the consultant) best to try reduce or even get back. So, I've taken the knock and trying to understand a little more.

One thing that was mentioned, was that because I'm a commission earner (provisional tax), I can claim back things like cellphone accounts etc.

Does this mean at the end of the year, I can get back all the VAT on the account? So a R349.00 contract, I'll get R500+ back at the end of the year?

 

[Fudzy]

Is the phone for work purposes? It should be then.

 

[Dolby]

I use it for work and personal.

How do they differentiate?

 

[Mbuzi]

I use it for work and personal.

How do they differentiate?

You work purely on commission? because for you to claim, commission income must be 50% more than your normal income (stand to be corrected). You can prepare a schedule of your calls or just state how much % wise is private and/or business and multiply the total bill by that

 

[Dolby]

Ahhh .... no, not purely commission.

Commission is typically only 10-20% of my basic

 

[Just_Ice]

You can only claim that vat back if you are a registered vat vendor.
I assume that you work for another company, and that you dont really sell anything in your own personal capacity?
If that is the case you probably dont meet the requirements to register as a vat vendor, so you wont be able to claim the vat...

What you may be able to do though is claim some of your cellphone expenses as a deduction against your income though for income tax purposes.
Not sure about the specifics of that, but if you can prove that it was used in the production/earning of your income, that percentage should be deductible.

 

[Dolby]

What you may be able to do though is claim some of your cellphone expenses as a deduction against your income though for income tax purposes.

Yea - that's what I heard!

So a percentage?

I'll see if I can find anything on Google

Thanks

 

[Mbuzi]

Ahhh .... no, not purely commission.

Commission is typically only 10-20% of my basic

You can't claim.

 

[Celine]

your commission income must either be full commission or 51 % part commission of a package based on commission and salary.

 

[Dolby]

Oh damn