Page 133 - P6 Slide Taxation - Lecture Day 5 - VAT Part 1

Example

An employee is granted the use of a company-owned

motor car (input tax denied) with a determined value of

R160 000, that is fully used for taxable purposes. The

employee pays R600 per month that is allocated as

follows:

 Fuel 112

 Insurance 150

 Maintenance 70

 Interest 168

 Fixed costs of car 100

Total 600

Calculate the VAT consequences of the above.