You can claim the full interest and when you calculate the wear and tear you would use the cost less the interest and add the VAT then divide by 7 to work out the wear and tear.
Izhaarsays: 28 September 2015 at 16:39
why would I less the interest from the calculation if I can claim on it? please advise according to the figures. car value R280 000. vat inclusive. interest R40000.
TaxTimsays: 29 September 2015 at 9:01
Apologies for the way the answer read, you would take the car value plus the VAT and use that to depreciate. Then the interest each year that you paid can be deducted as well. Not the entire interest over the period.
Value R200 000 VAT 28 000 Interest over 5 years R40 000
Depreciation - 228 000/7 Interest - R40 000/5
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