Delivery van or panel van, where the VAT is claimable
VAT input onlyA vehicle constructed mainly to carry goods is not a motor car, so a VAT vendor can generally claim the input tax on it.
No income tax relief, but VAT may be claimable · Company
Panel vans, single cab bakkies and trucks are built to carry goods rather than passengers, so they fall outside the VAT definition of a motor car and the s17(2)(c) denial does not apply. A vendor using the vehicle to make taxable supplies can claim the full input tax on the purchase price, subject to holding a valid tax invoice and apportioning if the vehicle is also used for non taxable purposes. For income tax the treatment is the same as any vehicle: written off over time under wear and tear, apportioned for private use.
The whole answer turns on how the vehicle is constructed, not what you call it or what you use it for. A double cab used only for deliveries is still a motor car and still denied. A single cab converted to carry passengers can move the other way. Check the specific model against the definition, and keep the reasoning on file.
This is one of the few places where a purchasing decision genuinely changes the tax outcome by a large amount. If you are a registered vendor buying a work vehicle, the difference between a van and a double cab is real cash, not a marginal rate saving.
VAT Act s17(1)
governed by Wear and tear on business assets
governed by Input tax on capital goods
Vehicles and travel