Page 102 - P6 Slide Taxation - Lecture Day 5 - VAT Part 1
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Solution (finance lease)
The bank has to account for output tax on the cash
value (excl. interest) of the car of (R112 000 × 15/115)
on 1 June.
The interest is a financial service – an exempt supply.
The manufacturer is not able to claim any input tax
deduction, since the vehicle is a ‘motor car’ as defined.
