- Registered VAT vendors can deduct input tax for goods and services used in making taxable supplies.
- They need to apply an apportionment ratio to determine the input tax to claim for goods or services acquired for mixed purposes.
- The revised Binding General Ruling 16 (BGR 16) provides the default apportionment ratio, and vendors can apply for an alternative method approved by SARS.
- The revised ruling applies to financial years starting on or after 1 January 2024 and deals with transitional matters.
- It prescribes the standard turnover-based (STB) method as the default method to determine a vendor’s input tax apportionment ratio.
Source Pieter van der Zwan
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