BUSINESS TIPS - VAT (Value Added Tax) Claims for Fuel

BUSINESS TIPS

VAT (Value Added Tax) Claims for Fuel

By Nikki Viljoen – Viljoen Consulting January 2009.

I am doing quite a bit of research on what can be claimed for VAT, not only for my own Business purposes, but in general as I seem to be on a mission of late. I am trying to change people’s mindset and how they view the VAT man – you see, I have a rather special relationship with the VAT man.

It appears that I am the only one of the planet who actually LOVES him! Yes I do! I love the VAT man – you see, unlike most people my VAT man appears to ‘pay’ me to be a VAT vendor – it does require a little effort on my part too though.

I have to be VAT registered, I have to complete my VAT returns every second month, I have to make sure that I pay those funds across – on time, or I will be liable to pay penalties and interest. So you see it means that I have to manage my VAT. In return, the VAT man allows me to claim for all sorts of things.

Now I know that I have a brilliant accountant – his name is Nico Labuschagne and he can be contacted on 084 606 0075 or labuschagneassoc@lantic.net – I know that he is up to date with all the bits and pieces that we can claim from the VAT man (so as to increase the amount of money that the VAT man pays me), but I am a bit of a control freak, so I also need to know what I can and cannot claim.

I have come across this useful piece of information and being a sharing girl, I am sharing this with all of you.

Consulting to my clients, means that I often have to travel to them and if they are far enough away, I charge them for my fuel and running costs at the AA rate. Now the question is – am I correct in charging VAT on top of this – fuel per se, you see does not attract VAT.

The answer is – of course you do. The bottom line is that you are not actually charging the VAT on the fuel, but rather that you are using the charge of the fuel and the running costs as a tool to calculate the value of your services to your client – so it is subject to VAT.

Best I go and find some more ‘far-a-way’ clients then.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za