Revealed: The cars you CAN and CAN'T claim input tax on

SARS is very clear that you can't claim the input tax on a car even if you use the car in your business in the course of making taxable supplies, says the Practical Vat Loose Leaf Service.

That said, SARS also makes it clear that it's not what you use the car for that has an impact on its input tax qualification. It's all got to do with the nature of the car itself.

You CAN'T claim input tax on these cars

SARS will slam the door on these five cars:

1. Double-cab vehicles
2. Normal sedan-type passenger vehicles
3. Station wagons
4. Minibuses
5. Sports utility-vehicles (SUVs)

If you try to claim the input tax on these cars, SARS will reject your claim and may penalise you for claiming input tax you aren't entitled to.

You can't claim the Vat you paid on the purchase or rental of any motor vehicle as input tax.

There are the seven vehicles SARS opens the doors to…

You CAN claim the input tax if you buy or rent any of these cars:

1. Delivery motor cycles
2. Goods transportation trucks
3. Single-cab light and heavy delivery vehicles
4. Vehicles with an unladen mass of 3 500kg or more
5. Buses for transporting staff, if the unladen mass exceeds 3 500kg
6. Other special purpose vehicles and equipment, for example, bulldozers, graders, combine harvesters, tractors and ambulances
7. Hearses and game viewing vehicles.

Remember, it's not what you use the car for that has an impact on its input tax qualification. It's the car itself.

Knowing the type of vehicles you can and can't claim input tax on will help ensure you comply with SARS.