Page 25 - P6 Slide Taxation - Lecture Day 3 - VAT Part 2

Right of use of a vehicle:

( [ (determined value x 0.3% of 0.6%)

- amount paid by employee ] x 14/114 x % TS

1. Determine the „determined value‟

• Original cost of the vehicle

• VAT and finance charges excluded

• reduced by 15% pa (reducing-balance method) for each 12

month period that passed since original purchase by the

employer (VAT vendor) until use was granted to employee.