These issues are often not handled correctly by businesses:
1) The input Vat on subscriptions
- to sports clubs, country clubs, sport governing bodies, holiday clubs is not claimable.
- professional bodies, magazines and trade journals directly related to your enterprise is claimable.
2) VAT on fringe benefits is often overlooked i.e. how to calculate VAT on the right of use of a motor vehicle
- on which the input tax was not allowed
0.3% X the determined value of the motor vehicle X 14/114 = monthly output VAT payable
0.6% X the determined value of the motor vehicle X 14/114 = monthly output VAT payable
If the employee pays all of the repairs and maintenance of the vehicle the calculated VAT is reduced by R85 /month