VAT Question

[undesign]

People who are desperate to claim the VAT back will drive THAT THING in order to claim.

Well, still not easy. You have to drive that kark for claiming input VAT. Plus your depreciation is calculated on the ex-VAT amount. Plus your recoupment when you sell is based on the ex-VAT amount. Plus you will pay output VAT when you sell etc. etc. etc.

Of course it is not a delivery vehicel. It is a vehicle used in the generation of business and THAT is my point. His VAT is linked to his BUSINESS but he is not allowed the deduction for a vehicle used by the same BUSINESS. Just does not seem fair, but yes, that is the law.

I agree it's not fair, but it would be almost impossible to manage properly otherwise.

 

[HavocXphere]

It is a vehicle used in the generation of business

And thats why SARS gives you a deduction...just not the one you want.

Half the stuff in the tax law isn't fair. e.g. Different interest rates apply depending on whether you owe SARS or SARS owes you. Guess which is higher.