Call for comment: Draft Interpretation Note on input tax on motor cars
31 March 2014
Posted by: Author: SARS Legal and Policy
Author: SARS Legal and Policy
SARS published Draft Interpretation on Input Tax on Motor Cars for comment by no later than 30 May 2014.
This Note sets out the –
• interpretation of the definition of a "motor car”;
• general principle that value-added tax (VAT) incurred on the acquisition of a motor car is not permissible as an input tax deduction;
• exceptions to the general principle, that is, when an input tax deduction is allowed on the acquisition of a motor car;
• instances when input tax may be deducted on the acquisition of accessories, modifications and conversions to motor cars;
• application of change in use adjustments to motor cars; and
• VAT treatment of motor cars supplied as a fringe benefit.
The SAIT will be making a submission to SARS on this matter. Kindly submit all comments to email@example.com by no later than 28 May 2014.
Please click here to download the Draft Interpretation Note.