Page 21 - PowerPoint Presentation

Use Of Motor Vehicle

Employee bears FULL repairs and maintenance costs

• R85 per month deduction

 Employee pays a consideration for the right of use

• 2 separate transactions:

 Supply of fringe benefit (output VAT)

 Receipt of consideration (output VAT)

• Deduction if

• INPUT TAX DENIED: Maintenance

• INPUT TAX NOT DENIED: Fixed Costs & Maintenance

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