If a
taxpayer provides both taxable and non-taxable supplies, the new VAT Act
primarily provides for the keeping of separate accounting for the purposes of
input tax deduction. Pro-rating shall only apply in cases where the keeping of
separate accounting is not possible.
The law lays down the cases when input tax adjustments must be made. In future, input tax adjustments will need to be made in respect of goods which have been stolen or destroyed in a natural disaster, unless evidence to the theft or the destruction is supported by documents.
With the new VAT Act coming into force, the prohibition on deducting input tax on the cost of acquired company cars and the costs related thereto has been lifted for taxpayers whose share of taxable supplies is less than 50% of total supplies. In addition, up to 30 June 2013 it will be possible to deduct the previously non-deducted input tax.
Latest articles
18
Jan
15
Dec
2
Dec
We will send you articles keeping you up to date with the latest trends and developments in accounting, taxation or legal fields.
