Page 161 - P6 Slide Taxation - Lecture Day 5 - VAT Part 1
P. 161
Solution
Input tax of (R22 800 × 15/115) is allowed on the
conversion costs. An adjustment will be allowed in
terms of s 18(9), which will result in an input tax claim
of (R114 000 × 15/115) in relation to the acquisition of
the station-wagon. Where the hearse is subsequently
sold to another undertaker, the supply will be subject to
VAT at the standard rate in terms of s 8(14)(b).
Alternatively, where the hearse is converted back into a
station-wagon or it is no longer used to transport
deceased persons, a supply of the hearse is deemed to
be made in terms of s 8(14A).
