Page 19 - F6 Slide - VAT Part 5 - Lecture Day 5
P. 19
Example
A station-wagon is purchased for R114 000 (VAT
included). An input tax deduction is denied, as the
station-wagon falls within the ambit of the definition
of ‘motor car’. The station-wagon is subsequently
converted into a hearse for R22 800 (VAT included).
The market value on the date of the conversion was
R115 000.
Calculate the input tax claimable as a result of
the conversion of the motor vehicle.
