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Call for comment: Draft Interpretation Note on input tax on motor cars

31 March 2014   (0 Comments)
Posted by: Author: SARS Legal and Policy
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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 by no later than 28 May 2014. 

Please click here to download the Draft Interpretation Note


Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.


The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.

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