SARS Int Note No.49 (issue 2) - Documents required in tems of section 16(2) and 16(3) deductions

DRAFT INTERPRETATION NOTE: NO. 49 (ISSUE 2)

ACT : VALUE-ADDED TAX ACT NO. 89 OF 1991 (the VAT Act)

SECTION : SECTION 1, DEFINITION OF THE TERM "INPUT TAX” READ WITH SECTIONS 16(2) AND 16(3)

SUBJECT : DOCUMENTARY PROOF REQUIRED IN TERMS OF SECTION 16(2) TO SUBSTANTIATE A VENDOR’S ENTITLEMENT TO "INPUT TAX” OR A DEDUCTION AS CONTEMPLATED IN SECTION 16(3)

Purpose

This Note provides guidelines on the documentary proof that must be obtained and retained under section 16(2) to substantiate a vendor’s entitlement to "input tax” as defined in section 1, or a deduction as contemplated in section 16(3).

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