Light duty vehicle (LDV) for handicapped person - Input VAT
07 March 2014
Posted by: Author: SAIT Technical
Author: SAIT Technical
The answer to this query is based on legislation
as at 2014/03/07.
Q: I have
a client that is severely handicapped. He runs an engineering concern and
needs to travel and needs to use a LDV. Currently no normal LDV’s with the
space to accommodate his physical handicap is available in an automatic
transmission. Only the Double Cab versions are available in automatic. But
these vehicles do not qualify for VAT benefits. Question: What would the
procedure be to direct such a request to SARS to possibly get the VAT
benefit. Any assistance would be appreciated.
of ‘motor car’ is: "a motor car, station wagon, minibus, double cab
light delivery vehicle and any other motor vehicle of a kind normally used on
public roads, which has three or more wheels and is constructed
or converted wholly or mainly for the carriage of passengers, but does not include— ... (d) vehicles constructed for a special purpose other than the carriage of
persons and having no accommodation for carrying
persons other than such as is incidental to that purpose".
It would seem
that the vehicle would fall within the definition of "motor car” and an input
tax would therefore be denied however, one could possibly argue that the
vehicle has now been converted for the transport of goods as contemplated in
par(d) but it is necessary to accommodate him as driver as well. You may
apply for an advance ruling in terms of Chapter 7 of the Tax Administration
Act: ‘advance ruling’ means
a ‘binding general ruling’, a ‘binding private ruling’ or a ‘binding class
My concern is that any such ruling takes time and is costly and may
ultimately not to be in favour of your client as the VAT Act simply does not
allow for a deduction of the input tax, but the matter is however open for
interpretation of the Act.