Page 160 - P6 Slide Taxation - Lecture Day 5 - VAT Part 1
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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.
