In South Africa, all vehicles must have a Vehicle Log Book to keep a record of traveling tax. This log book must be updated with all the required information by the driver whenever there is a change in any of the vehicle’s details.
In this post, we’ll take a look at what information needs to be included in a Vehicle Log Book, and how you can go about updating your log book correctly.
What is Vehicle Log Book South Africa?
The South African Revenue Service (SARS) is a government department responsible for the collection of taxes in South Africa.
One of how SARS collects tax is through the compulsory registration and licensing of motor vehicles. When you buy or register a car in South Africa, you must provide SARS with certain information, including the Vehicle Identification Number (VIN) and engine number.
SARS uses this information to create a vehicle log book (digital or physical), which is a record of all motor vehicles registered in South Africa. The vehicle log book is an important document for both taxpayers and SARS. It contains detailed information about each vehicle, including the make, model, year of manufacture, and VIN.
South African law requires that anyone who uses a vehicle on public roads must keep a log book recording the date, time and kilometers traveled. The logbook is also used to record vehicle defects and the name of the person responsible for the maintenance of the vehicle. The logbook also keeps a record of taxes paid throughout the year.
The main purpose of the log book is to monitor and enforce safe driving practices, and to ensure that vehicles are maintained in a roadworthy condition.
Benefits of Vehicle Log Book
If you own a car and use it for business travel, you may get deductions on annual tax returns. To get this tax allowance you need to note down all the readings in your vehicle log book so that you can present them at the time of tax paying.
1. You Can Claim For Tax Deduction
You can calculate your travel deduction once you have taken the readings and calculated your total travel for the year. First, determine what percentage of total kilometers were traveled for business and what percentage were for personal use. For travel deductions, you must keep a logbook that shows which trips were for business and which were for personal reasons.
2. You Can Claim For Travel Deduction
Now that you have calculated the amount of your claim, you can proceed to the next step. There are two options available to you as a taxpayer:
- Each year, SARS publishes a table of costs that you can use to calculate your claim. The first page of this logbook contains the cost tables relevant to the tax year from 1 March to 29 February. In place of keeping accurate records of all your expenses, you should use the costs associated with your vehicle’s value.
- A claim can be determined based on actual costs as an alternative. To comply with this requirement, you will have to keep accurate records of all your expenses throughout the year, including fuel, maintenance, leases, and insurance.
Notice: SARS may require you to submit your logbook for at least five years to verify your claim. The SARS has the right to audit and query the content of any logbook kept by a taxpayer.
How to Use Vehicle Log Book?
- Start recording the reading of the vehicle odometer from day one of the tax years (1st March) and keep recording until the last tax day of the year (28/29th February).
- Keep the log book along with the vehicle throughout the year. Please ensure that you only record the business traveling record, not private traveling.
- Calculate the business traveling kilometers.
- On the tax-day show, the vehicle log book to the SARS and they will calculate the final tax amount.
What to Record on Log Book?
Record the following details in your vehicle log book in South Africa.
- The first day of travel.
- The daily traveled kilometers for business purposes.
- The destination of traveling.
- Time of starting.
- Date of traveling.
- The notice section also allows you to add a reason.
Lost Vehicle Log Book In South Africa
Have you lost your vehicle log book in South Africa? No worries, if you’re the title holder of the vehicle you can claim for a duplicate logbook.
- Visit the nearest vehicle registration authority office.
- Bring your ID card and the DRC of motor vehicle
- A DCT form is also required
Please ensure that only the title holder of the vehicle can apply for a duplicate logbook. At the same time, you may need to sign on a statement that you’ve lost the previous one and describe the reason too. However, there is no punishment if you’ve lost the vehicle logbook in South Africa but legal documentation may require.
People also ask
Yes, if you’re using an online/digital logbook (V5C). If you’re using a physical logbook issued by the SARS, it is not possible to find your vehicle logbook number online in South Africa. In any case, you can learn more about this by contacting the relevant authorities in your province.
The Department of Transport in each province is responsible for issuing and keeping vehicle logbooks. You will need to provide them with your vehicle registration details so that they can issue you a duplicate logbook.
Yes, you can easily change the vehicle log book online without any hassle. You can either use the online portal of your state’s DMV or you can use a private company that offers this service. Although there may be a small fee involved, it is worth it to have the convenience of changing your vehicle logbook online.
Keep the logbook with you throughout the year and record your business traveling time on it. Keep in note the places from where you start and end to travel. Note down the kilometers you traveled for business purposes.
Conclusion
By Income Tax Act No.58 of 1962, travelers may deduct expenses related to private vehicle use for business travel. Since it is considered private travel, a person who travels between their home and workplace cannot claim this.
Initially, you must record your vehicle’s odometer reading on 1 March every year (the start of the tax year for individuals) and again on the last day of February each year. Using these readings, you can calculate the number of kilometers you traveled during the year.
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