- The Tax Appeals Tribunal ruled that the sale of repossessed collateral is subject to Value Added Tax (VAT).
- The Tribunal determined that the VAT Act does not exempt the sale of repossessed collateral from VAT.
- The ruling affects financial institutions that provide loans for asset acquisition.
- The Tribunal stated that an auction sale is a “hostile sale” where the creditor sells the debtor’s property by force.
- The Tribunal concluded that the VAT Act exempts loan facilities from VAT, but not the sale of repossessed collateral.
Source: globaltaxnews.ey.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.
