OK - so I'm doing it wrong then
Please refer to post 3 and then confirm your position on this.
OK - so I'm doing it wrong then
Please refer to post 3 and then confirm your position on this.
Participation is voluntary.
Alcocks Electrical Services | Alcocks Pest Control & Entomological Services | Alcocks Hygiene Services
Hi
You are not allowed to claim the VAT on the actual motor vehicle as definited in S1 of the act.
You are allowed to claim VAT on the maintenance, etc as this is not excluded ... only the actual motor vehicle is specifically excluded. The only provisio is that this maintenance, etc must be for business purposes otherwise you will need to apportion the business and private use.
If you sell the vehicle, then you will have to charge output vat, but a change of use adjustment comes into play and you will be allowed to claim input vat on the purchase price, unless it is sold to a connected person in which case you pay input vat on the lower of the purchase price or market value.
The exception to the rule of not claiming input VAT on the vehicle is if renting a car is your main source of income or you buy and sell cars, in these circumstances you can claim VAT.
Regards
Itai
If you need any Accounting, Tax or even Financial Management advice, PM me and I'll try help and keep your information confidential.
Visit my Android ZA website - a website dedicated to Google Android in South Africa - www.androidza.co.za
Hi Itai
Thanks for the explanation.
That means even though we buy PASSENGER vehicles as our armed response vwhicles, we ARE allowed to claim the vat on the MAINTENANCE and RUNNING COSTS, but the Vat on the Purchase price are disallowed?
DAVE A, do you agree with this?
Best regards
Alet
Participation is voluntary.
Alcocks Electrical Services | Alcocks Pest Control & Entomological Services | Alcocks Hygiene Services
thank you all for the help!
A
Did you like this article? Share it with your favourite social network.