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

Monday, 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



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