Quick Answer: Can you claim VAT on fuel in South Africa?

The following transactions or goods are zero-rated supplies: 19 basic food items, like milk and brown bread. Petrol and diesel.

Can you claim VAT on fuel?

You can reclaim all the VAT on fuel if your vehicle is used only for business. There are 3 ways of handling VAT if you use the vehicle for both business and private purposes. You can: reclaim all the VAT and pay the right fuel scale charge for your vehicle.

Is there VAT on diesel and petrol?

Petrol, diesel and biodiesel are classified as fuel levy goods and zero-rated for value added tax (VAT) purposes.

Is fuel taxable in South Africa?

A breakdown of the taxes (for 95 Petrol), according to the department is as follows: Fuel levy: 393 cents per litre. Road Accident Fund levy: 218 cents per litre. Customs and excise: 4 cents per litre.

How do you work out VAT on fuel?

The advisory fuel rates are inclusive of VAT, so for example: VAT at 20% and advisory fuel rate being 21p per mile for a distance of 100 miles. The gross amount would be £21.00, which would equal 120% of the fuel cost, so the VAT element is calculated by dividing the amount by 6, thus VAT mileage amount would be £3.50.

IT IS INTERESTING:  Which nation traded with West African empires?

What is the VAT on fuel?

Fuel Duty is included in the price you pay for petrol, diesel and other fuels used in vehicles or for heating. You also pay standard rate VAT at 20% on most fuel, or the reduced rate of 5% on domestic heating fuel.

What items are exempt from VAT?

There are some goods and services on which VAT is not charged, including:

  • insurance, finance and credit.
  • education and training.
  • fundraising events by charities.
  • subscriptions to membership organisations.
  • selling, leasing and letting of commercial land and buildings – this exemption can be waived.


Can a company claim VAT on diesel?

VAT on Petrol and Diesel

Value Added Tax is fully recoverable on diesel by VAT registered traders if the vehicle is used 100% for business.

Are bank charges zero-rated for VAT?

Bank charges are exempt from VAT and must be posted with T9 i.e. they will not appear on the VAT return.

Is there VAT on aircraft fuel?

3.5 Value added tax is not payable on the aviation fuel levy.

What is fuel tax used for in South Africa?

Money collected through the RAF Levy portion of every litre of petrol sold is used to fund the Road Accident Fund, which uses the money to compensate victims of road accidents. In 2016, the RAF Levy was R1,54 (unchanged from 2015).

What is the tax threshold in South Africa?

Rates of Tax for Individuals

​Taxable income (R) ​Rates of tax (R)
1 – 195 850 18% of taxable income
195 851 – 305 850 35 253 + 26% of taxable income above 195 850
305 851 – 423 300 63 853 + 31% of taxable income above 305 850
423 301 – 555 600 100 263 + 36% of taxable income above 423 300
IT IS INTERESTING:  Is Northern Africa considered Middle East?

Is diesel taxed in South Africa?

Diesel is taxed. Kerosene and LPG are subject to the marker levy, but the rate is too low to be discernible in the figure. Biofuels are not taxed.

Do I need fuel receipts to claim mileage?

The answer is yes, you must keep the fuel receipts if you want to claim the VAT on the mileage expenses.

How do you calculate 45p per mile?

Simply multiply your miles travelled by the applicable rate. For example, if you use your car to travel 12,000 miles in a tax year, the first 10,000 will be calculated at 45p per mile, whilst the remaining 2000 will be paid at 25p per mile, giving you a total allowance of £5000.

Can I claim tax back on fuel for work?

If you’re using a vehicle for work purposes, being able to claim tax relief for costs like fuel expenses is essential. … These allowances let you offset the cost of fuel by claiming for every mile you drive.

Hai Afrika!