Blog Q&A Calculators Students Logbook Contact
Earn under R350,000?Click here to see why you still need to file to get your Tax Refund.
CLOSE
File your Tax Return online with TaxTim

  Tax Done in 20 Mins or Less
  Maximise your Refund and find new Deductions
  Simple and Easy. No more SARS stress

Start now

VAT on new vehicle for commission earner

Posted 29 September 2015 under Tax Q&A


Let TaxTim
help you
submit your
Tax returns!


TaxTim will help you:

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund

Get started

Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS in just a few clicks!

Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →
Izhaar says:
25 September 2015 at 16:03

As a Commission earner and using my vehicle for business purposes. Can I claim the VAT back on purchasing a new vehicle?
also what can I claim on the interest portion?

This entry was posted in Tax Q&A and tagged , , , , , , . Bookmark the permalink.

TaxTim TaxTim says:
28 September 2015 at 10:54

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.

Izhaar says:
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.

TaxTim TaxTim says:
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.

For example:

Value R200 000
VAT 28 000
Interest over 5 years R40 000

Year 1:

Depreciation - 228 000/7
Interest - R40 000/5


Get SARS Tax Dates and Deadlines in your Inbox
 

We'll tell you when you need to file, along with tax tips and updates.

Blog Categories


Let TaxTim
help you
submit your
Tax returns!


TaxTim will help you:

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund

Get started

Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS in just a few clicks!