HomeHome SearchSearch MenuMenu Our productsOur products

So you just bought a minibus for business purposes... Can you claim input tax on it?

by , 10 June 2014
Let's say, you run a Vat registered business. And despite the tough economic times, your business is doing quite well. So you decide to buy a minibus for business purposes to deal with your day-to-day operations better.

You're now wondering if you can claim input tax on it so you can put some money back in your pocket.

Read on to find out whether or not you can claim input tax on a minibus you use for business purposes.

*********** New ************

Confidential: 13 Vat secrets SARS doesn't want us to publish

These secrets will give you insider information on how to red-flag potential Vat risk areas, before the SARS team does.

Click here to find out what they are.
 

****************************
 

Want to know if you can claim input tax on a minibus you just bought for business purposes? Here's the answer….

No! You can't claim input tax on your minibus.

The Practical Vat Loose Leaf Service explains that Vat law says you can't claim the Vat you paid on the purchase or rental of any motor vehicle as input tax.

In terms of the Vat Act, a motor vehicle is any vehicle that:

  • Has three or more wheels;
  • Is normally used on public roads;
  • Is constructed or adapted for carrying passengers;
  • Weighs less than 3 500 kg (unloaded); or
  • Is constructed to carry less than 16 passengers.

SARS is very clear that you can't claim the input tax on a minibus even if you use it in your business in the course of making taxable supplies.

If you try to claim input tax on your minibus, SARS will reject your claim and it can penalise you for claiming input tax you aren't entitled to.

Just to be on the safe side, take a look at the other motor vehicles SARS won't let you claim input tax on.
 

*********** Recommended product************

Free book: 13 Steps to a successful Vat review.

All the information you need in one little book to make sure your Vat review is successful. Get your copy now.
 

*****************************************
 

You can't claim input tax on a minibus you just bought for business purposes and on these four motor vehicles

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

Now that you know you can't claim input tax on your new minibus, make sure you comply.



Related articles




Related articles



Related Products



Comments
0 comments


Recommended for You 

  Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance



Here are all the most interesting, thought-provoking and common tax questions
asked by our subscribers over the last tax year – everything from A to Z!

To download Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance click here now >>>
  Employees always sick? How to stop it today



Make sure you develop a leave policy to regulate sick leave in your company.

BONUS! You'll find an example of the leave policy and procedure in this report.

To download Employees always sick? How to stop it today click here now >>>
  Absenteeism: Little known ways to reduce absenteeism



This FREE e-report will tell you how you can reduce absenteeism in your workplace while avoiding the CCMA and without infringing your employees' labour rights.

To download Absenteeism: Little known ways to reduce absenteeism click here now >>>
  7 Health & safety strategies to save you thousands



Don't let a health and safety incident cost you one more cent. Implement these seven
strategies in your company today.

To download 7 Health & safety strategies to save you thousands click here now >>>