Results 1 to 4 of 4

Thread: How to claim against Use of Motor Vehicle Allowance - Car Dealer

  1. #1
    New Member
    Join Date
    Nov 2016
    Location
    Krugersdorp
    Posts
    1
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Question How to claim against Use of Motor Vehicle Allowance - Car Dealer

    A client of mine works as a car salesman at a car dealer. His IRP5 reflects a Use of Motor Vehicle Allowance, but he uses demo vehicles on the business premises for travel. How would I claim his business travel if I am not able to supply motor vehicle details or odometer readings to SARS?

  2. #2
    Full Member
    Join Date
    Apr 2012
    Location
    Durban
    Posts
    74
    Thanks
    4
    Thanked 11 Times in 10 Posts
    The use of motor vehicle allowance for sales persons is a fringe benefit tax.
    Not allowed to claim business travel as vehicle belongs to dealership.
    Can claim expenses against commission earned if he paid for petrol but they usually get petrol for demo and own use

  3. #3
    New Member
    Join Date
    Nov 2016
    Location
    Silverton
    Posts
    1
    Thanks
    0
    Thanked 0 Times in 0 Posts
    How do you treat the expense for the demostration purposes is only occasionally fuel paid by the employee?

  4. #4
    Full Member
    Join Date
    Apr 2012
    Location
    Durban
    Posts
    74
    Thanks
    4
    Thanked 11 Times in 10 Posts
    Commission paid on IRP5 must have code 3606 you can claim travel expenses on code 4015 in other deductions.
    SARS can ask you for a log book so he needs to keep record of travel for business and demo even if you had more than one car a year and proof that he paid for petrol.
    Salespersons never pay for demo petrol as they get petrol from dealership therefore SARS may query

Similar Threads

  1. [Question] Handling Motor Dealer Customer Deposits in Pastel Express14
    By DoddsPringle in forum Accounting Forum
    Replies: 1
    Last Post: 02-May-16, 07:47 PM
  2. Pastel journal on Motor Vehicle Purchased and Motor vehicle sold
    By CharleneHyman in forum Accounting Forum
    Replies: 1
    Last Post: 19-Nov-15, 08:38 PM
  3. VAT claim on Second Hand Motor Car
    By jacovanzyl8324 in forum Tax Forum
    Replies: 5
    Last Post: 10-Jul-14, 09:13 AM
  4. Replies: 4
    Last Post: 19-Nov-12, 03:36 PM
  5. Replies: 3
    Last Post: 15-Jul-12, 02:07 AM

Tags for this Thread

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •