Let's use some numbers to illustrate the question:
The employee's cellphone account is R500 per month ex VAT, R570 incl VAT.
1) Do I include R50 or R57 as a fringe benefit on his payslip
- include R50 (the Vat on the fringe benefit will be calculated as R50 x 14/114)
2) Can we claim R70 as input tax or only R63?
- can claim R70
3) Does the 90% of the cellphone account that is not included on his payslip, ie. R450, then go to telephone expenses on the income statement?
- I would think the total R500 still goes to expense account. Don't quote me on this .
4) How do you calculate the output VAT that is payable on this fringe benefit?
- as said in (1)
Thank you for your input!
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