Admin Boss Tax Knowledge Hub

Vehicle Expenses Tax Deduction

Updated: June 2026 5 min read
Quick Overview: You can claim vehicle expenses proportional to business use using either the SARS prescribed rate or actual cost method.
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Andre van Niekerk

Registered Tax Practitioner, Admin Boss

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Table of Contents
  1. Quick Answer
  2. Actual Cost Method
  3. Logbook Requirements
  4. Depreciation
  5. Frequently Asked Questions
Quick Answer

Enter the deduction in the relevant section of your ITR12 tax return on SARS eFiling. Keep all supporting documents for 5 years.

Actual Cost Method

Claim fuel, maintenance, insurance, licence fees, and depreciation proportional to business kilometres. Divide business km by total km to get the percentage.

Logbook Requirements

A detailed logbook is mandatory. Record every business trip with date, starting and ending odometer readings, destination, and purpose.

Depreciation

You can claim wear and tear on the vehicle value at 7% per year for passenger vehicles, limited to R736,050 for 2026.

Frequently Asked Questions

How do I claim this deduction on my tax return?

Enter the deduction in the relevant section of your ITR12 tax return on SARS eFiling. Keep all supporting documents for 5 years.

What documents do I need?

Keep receipts, invoices, tax certificates, logbooks, and any other proof of the expense. SARS may request these during verification.

Can Admin Boss help with my deductions?

Yes. Admin Boss is a registered tax practice that can review your deductions, ensure compliance, and maximise your tax savings. Visit adminboss.co.za/need-more-info/.

Need Help With Your Tax?

Admin Boss is a registered tax practice with over 20 years of experience helping South African individuals and businesses navigate SARS.