Sometimes a tax rule can be stupid (IMHO)

[jinxster]

I am in no means a tax specialist, but one thing I would like to appeal to Mr President is to change the VAT rule on the purchasing of a new vehicle.

In theory.... you want the consumer (person who is the end user) to pay the 14%...

I buy a non commercial vehicle for my consultants to drive around in. When they visit clients they dont like to be running around in a bakkie or a van. So I got a little Getz. It is used for work purposes. So that they can get orders. Granted I am the end user of the vehicle, but technically the only reason I need a vehicle is to supply the service to my clients.

I wouldnt buy the vehicle otherwise.

Why, Mr President cant you let me clain the VAT back, I'll pay it back when / if I sell it hehe.

[Dave A]

I just had to read the title and I was already agreeing with you

[murdock]

because of all the crooks out there...who seem to include the president of the country and anc young league....as metioned in the head lines of the all the newspapers this morning...as the saying goes follow the leader

[sgafc]

True, but on direct income tax you can derive many benefits from those vehicles. If you financed it via an Installment Sale you can claim the finance charges and the wear and tear for tax purposes. If financed via a finance lease all the lease payments less interest are deductible for tax(cant claim wear and tear). It basicly amounts to the same thing. So a lease is not better than an Instalment Sale Agreement.

The petrol, insurance and maintenance are also deductible! The benefits are greater if the vehicles are on the business name. With an individual on the otherhand, SARS is strict. We all know logbooks are compulsory as of this year. So bottom line, NO Logbook, No Tax Deduction!

On VAT I dont see them giving in, any time soon. Too many passenger vehicles on the road, this would actually work against them, for obvious reasons!

[wynn]

My family trust owns the vehicle I lease for business.
I just pay a monthly figure that happens to coincide with the petrol/maintainance for the use thereof.

[macygray]

aaaah a man to my own heart

I am in no means a tax specialist, but one thing I would like to appeal to Mr President is to change the VAT rule on the purchasing of a new vehicle.

In theory.... you want the consumer (person who is the end user) to pay the 14%...

I buy a non commercial vehicle for my consultants to drive around in. When they visit clients they dont like to be running around in a bakkie or a van. So I got a little Getz. It is used for work purposes. So that they can get orders. Granted I am the end user of the vehicle, but technically the only reason I need a vehicle is to supply the service to my clients.

I wouldnt buy the vehicle otherwise.

Why, Mr President cant you let me clain the VAT back, I'll pay it back when / if I sell it hehe.

Hi there
you just hit the nail on the head with this post!! A man to my own heart, read your posts and i agree basically with them all.

You are diverse hey!