Up and until the decision of the Supreme Court of Appeal (“SCA”) in the Capitec case the consensus view seemed to be that a bank/lender could not attribute any costs incurred for the purposes of making a loan, exclusively to the earning of fees, such as the initiation fee or the monthly service fee. This would be because the costs would be incurred with the intention of producing exempt interest and taxable fee income, thus requiring an apportionment to determine the extent to which any VAT incurred constitutes “input tax”, eligible for deduction.
Source Chris Eager
Latest Posts in "South Africa"
- Key VAT Changes in South Africa’s 2026 Budget: Thresholds, Zero-Rating, Second-Hand Goods, and Compliance
- South African Court Rules Only Parliament Can Change VAT Rate, Not Finance Minister
- 2026 South Africa VAT Threshold Changes: What SMEs Must Know About Compulsory and Voluntary Registration
- South Africa Proposes Repeal of Zero-Rated VAT on Bullion Gold in 2026 Budget
- EFF Applauds Court Ruling Affirming Only Parliament Can Change South Africa’s VAT Rate
