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Light duty vehicle (LDV) for handicapped person - Input VAT

07 March 2014   (0 Comments)
Posted by: Author: SAIT Technical
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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. 

A: Definition 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 ruling’.

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.


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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