VAT
VAT on company vehicles

Interpretation Note 72 states that any VAT borne by the employer must be included in the determined value of the vehicle. It goes further by explaining what VAT borne means… by saying that if VAT was applicable the employer was not entitled to an input tax credit for the related VAT.
It further stats that the VAT component must be excluded if the employer was entitled to a deduction of VAT input tax (registered VAT vendor).

This means that if the employer (VAT vendor) bought a bakkie that qualifies for input VAT credit, then the determine value will exclude the VAT.
If a non-VAT vendor bought this bakkie, he did not claim the input VAT credit, therefore, the determine value will include VAT.

In other words, if he borne the VAT, he would not claim it as input VAT credit. If he claims it as input VAT credit, he did not borne the VAT.

The extraction from the IN72 is copied below:

Even with wear and tear deductions, the value to be used is excluding VAT if the VAT was not borne by the employer and vice versa.