Single Cab VAT Deduction

[shawn.t]

Good day

I have read through many forums and posts regarding Single Cab bakkies and being able to deduct VAT.

At this stage I am looking at purchasing one for the company, but unsure whether there are certain rules/criteria when buying a single cab like certain amount of kilometers that needs to done per month.

Also heard a rumor (from an idiot) that the vehicle needs to be branded.

It will be highly appreciated if someone can shed some much needed light on this subject for me.

Thank you very much.

 

[HavocXphere]

Yes single is deductible.

You need to be careful with how you use it though. For example driving from your home to work is considered a "private" journey. If you use the bakkie for that then fringe benefit rules apply & it'll increase the income tax you pay.

 

[Paul_S]

You need to be careful with how you use it though. For example driving from your home to work is considered a "private" journey. If you use the bakkie for that then fringe benefit rules apply & it'll increase the income tax you pay.

SARS have no way of tracking personal usage.

 

[rtzouves]

Good day

I have read through many forums and posts regarding Single Cab bakkies and being able to deduct VAT.

At this stage I am looking at purchasing one for the company, but unsure whether there are certain rules/criteria when buying a single cab like certain amount of kilometers that needs to done per month.

Also heard a rumor (from an idiot) that the vehicle needs to be branded.

It will be highly appreciated if someone can shed some much needed light on this subject for me.

Thank you very much.

Single cab bakkie is not a motor vehicle as defined and the input vat is therefore claimable. Needless to say the company itself will obviously need to purchase it and have their vat number reflected on the tax invoice, etc.

Just remember that if they claim the input vat they also need to charge output vat on disposal.

You do not need to brand the vehicle. Branding has nothing to do with the definition of a motor vehicle as defined by SARS. No clue why someone would think that necessary

This interpretation note will give you all the info you need: http://www.sars.gov.za/AllDocs/Lega...25 - Draft VAT IN Input Tax on Motor Cars.pdf

 

[HavocXphere]

SARS have no way of tracking personal usage.

They don't no. It would constitute tax evasion though - so I'll leave it up to your own conscience to decide.

Personally taxes is something I try to do truthfully, not according to what I can get away with.

 

[Paul_S]

They don't no. It would constitute tax evasion though - so I'll leave it up to your own conscience to decide.

Personally taxes is something I try to do truthfully, not according to what I can get away with.

I don't evade taxes either but as a tax payer I'm increasingly starting to feel as if I'm complicit in the dodgy dealings of our government.
I'm essentially propping up a criminal organisation.
Legally paying taxes is the right thing to do but socially I'm not so sure.

 

[Lurker01]

They don't no. It would constitute tax evasion though - so I'll leave it up to your own conscience to decide.

Personally taxes is something I try to do truthfully, not according to what I can get away with.

OP is referring to VAT, not income tax.

 

[HavocXphere]

OP is referring to VAT, not income tax.

I know. In this scenario the one will trigger the other though.