Electric car tax headaches in South Africa

• Electric vehicles are exposing gaps in South Africa's tax system for company vehicle use, employee travel allowances, and fringe benefits.
• The tax system has not been updated to accommodate EVs, which were steadily becoming an everyday part of commercial life in South Africa.
• There is uncertainty around how to apply the deemed-cost method for electric vehicles, with SARS likely being more accepting of actual-cost methods due to the lack of clear guidance on treating electricity as fuel.