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

by , 08 December 2016
Revealed: The cars you CAN and CAN'T claim input tax onSARS has very strict rules when it comes to claiming input tax on cars. So make sure you get it right. Here are the five vehicles 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.


You could be missing out on 19 input tax VAT savings...
 
 
You're a business finance savvy individual, so I'm sure you claim input tax credits back on goods and services you supply or buy...
 
But are you 100% sure you're claiming all the input tax credits back available to you?
 
For example, are you sure you've claimed input tax on these five office expenses?
 
  • Plants for the office
  • Flowers sent to sick staff
  • Medical bills
  • Promotional gifts
  • Stationary orders for the office

Let's say, last month you spent R2 000 on plants for the office, R329.25 on flowers sent to a sick member of staff, R25 000 on medical bills for your staff, R70 567 on promotional gifts and R3 000 on stationary orders for the office...
 
If you calculate all five these office expenses together, you could slash R12 390.84 off your VAT bill in one month alone!
 
Now imagine if you saved that much EVERY month!
 
And that's just the start!
 
There are 19 input tax claims you can use to your advantage... Find them here


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Comments
1 comments


Dana 2016-11-04 14:22:00

You mentioned that you can claim the input tax if you buy for example a bus for transporting staff, if the unladen mass exeeds 3 500kg. Is the last part of your statement not wrong?
I was made understood that it is if the GVM gross vehicle mass of the vehicle that has to be over 3 500kg's before you can claim the tax. There is a big differance between an "unladen vehicle mass" tare weight and
"gross vehicle mass " gvm of a certain vehicle. Please clarify??

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