Q: Could you claim VAT on bank charges
even if you don't receive a VAT compliant tax invoice from the relevant banking
A: We accept that the taxes on the bank charges are in fact input
tax and used (or consumed) in the making of taxable supplies. As with all
deductions, section 16(2) requires that the deduction must be supported by
valid documentation, in this instance a valid tax invoice. We are not
sure why you say that "you don't receive a VAT compliant tax invoice” as the
bank certainly has to issue a valid tax invoice. It is our experience
that they mostly do.
Disclaimer: Nothing in
this query and answer should be construed as constituting tax advice or a tax
opinion. An expert should be consulted for advice based on the facts and
circumstances of each transaction/case. Even though great care has been taken
to ensure the accuracy of the answer, SAIT do not accept any responsibility for
consequences of decisions taken based on this query and answer. It remains your
own responsibility to consult the relevant primary resources when taking a
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