- South African Revenue Service posted Tax Court Judgment on VAT deductions for mixed-supply entities
- Taxpayer challenged 12.5 percent cap on input VAT deduction for lease agreement for student residence
- Tax Agency disallowed deduction, stating lease was exempt supply of accommodations
- Tax Court agreed, stating 12.5 percent cap is default maximum apportionment cap to prevent abuse
- Arrangement was deemed exempt supply of student accommodations, resulting in non-deductibility of input VAT for leasehold improvements
Source: news.bloombergtax.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
