Page 160 - ADVANCED TAXATION - Day 1 Slides

Example

Mr Knowhow, a VAT vendor on the invoice basis, did the

following in March 2013:

 He started to use his personal motor vehicle 100% for

business purposes. His business entails only taxable

supplies, and he is not a car dealer. The motor vehicle

cost him R66 000 (VAT inclusive) and on the date when

he started to use it for business purposes, it had a market

value of R37 500.

 He started to use his private computer 100% for business

purposes. The computer cost him R11 355 (VAT
inclusive) and had a market value of R7 300 when he

started to use it for business purposes.