Logbooks
“The devil is in the details”
What is a compliant logbook?
The SARS minimum requirements are:
> Date of Travel
> Kilometeres Travelled
> Business travel details
(where to and reason for the trip)
> Opening and Closing Odometer
The above minimum requirement from SARS are really basic logbook data but they have issued an Interpretation Note 14 (Issue 5) dated 30 March 2021 that outline more details required in terms of the Reason for each trip.
SARS Interpretation Note 14 (Issue 5) – 30 March 2021
SARS now require much more detail for Reasons – extract from Interpretation Note 14, page 15
The “reason for trip” is a crucial element of a logbook. SARS will not be in a position to fulfil its obligation under the law to test the validity of a travel claim where the “reason for trip” is recorded in a logbook as simply “meeting”, “client”, “business” or similar vague particulars.
The information that taxpayers provide under “reason for trip” must therefore be sufficient to allow SARS to verify that the travel undertaken was for business purposes and qualifies for a deduction. At the very least, this should include the following information:
Specific details of why the travel was undertaken, for example “presentation to board”, “meeting with supplier” or “delivery to client”.
Details of the person with or for whom the engagement was undertaken, for example, “head office of ABC Ltd”, “Mr A at LMN Supplies (Pty) Ltd” or “delivery to client Mr Z”.If contact details are available these should also be provided.
As much detail should be provided as possible. In many cases, this will permit SARS to verify travel claims without having to request additional information from a taxpayer or to disallow travel claims because of insufficient information that was provided to verify such claims.
The information required to be provided under “reason for trip” is not confidential information. In the same way that taxpayers claiming a deduction for expenditure incurred under, for example, section 11(a) could be required to provide relevant information such as client invoices, client contracts, etc., so too should taxpayers provide full details of business travel to SARS should they wish to claim a travel deduction. It bears pointing out that SARS is bound by the confidentiality provisions of Chapter 6 of the TA Act.
Elogger Logbook Format in Excel
Elogger provides accurate logbook data including Date, Distance (Business or Private). The mode is changed using the Mode Button.
We also added Actual Street Addresses. The Start Destination is the End destination of the previous trip.
