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How to use your company's delivery bike to shrink your VAT bill

by , 06 December 2016
How to use your company's delivery bike to shrink your VAT billHave you bought or rented delivery bikes for your business?

Well, you'll be glad to hear you CAN claim back the input tax to reduce your VAT bill.

But why can you claim the input tax on a bike when it's a mode of transport?

Here's why.

VAT and vehicles – Check the details before you get into trouble!
If you run a business and have to use a car, you should know how to declare VAT. It's not easy though…

Your problems will begin as soon as you buy the car. You have to be 100% sure what you can and can't deduct.

VAT law clearly disallows an input tax deduction on what it terms a 'motor car', but will allow a deduction on single cab vehicles, delivery vehicles, and some others.

Do you know whether the vehicle you have bought is allowable as a deduction? What else do you have to know? – Much more as there are many traps. Can you claim input tax on a car you rent while out of town on business?

What about repairs and insurance? Are you aware that there are many more unclear situations?

Have a look here before you get into trouble!


Why you can claim input tax on motor bikes

The answer is simple, really. A motor bike, has only two wheels and it isn't defined as a 'motor car" in the VAT law. So you can claim the VAT on its purchase or rental price as input tax.
And the good news is, claiming the VAT back on motor bikes isn't the only way to reduce your VAT bill when you purchase cars for your business...

There are other types of vehicles that will do the same. Keep reading to see which ones...

Did you hear SARS denied De Beers Consolidated Mines R7 million input tax claim?

When De Beers employed local financial service providers to work out a fair price of their shares, they claimed the R7 million input tax.
But SARS denied this. And after 12 years of legal battles, the Supreme Court of Appeal agreed with SARS!
Click here to make sure you know what you can and can't claim input tax on!


Six other motor vehicles that can shrink your VAT bill too

You can claim the input tax on the purchase or rental of the following vehicles
  1. Goods transportation trucks;
  2. Single-cab light and heavy delivery vehicles;
  3. Vehicles with an unladen mass of 3 500kg or more;
  4. Buses for transporting staff, if the unladen mass exceeds 3 500kg;
  5. Other special purpose vehicles and equipment, e.g.; bulldozers, graders, combine harvesters, tractors and ambulances; and
  6. Hearses and game viewing vehicles.

You could be missing out on 19 input tax VAT savings...Click here to find out more

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