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:
Normal sedan-type passenger vehicles
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:
Delivery motor cycles
Goods transportation trucks
Single-cab light and heavy delivery vehicles
Vehicles with an unladen mass of 3 500kg or more
Buses for transporting staff, if the unladen mass exceeds 3 500kg
Other special purpose vehicles and equipment, for example, bulldozers, graders, combine harvesters, tractors and ambulances
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
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!