- Constitutional Court judgement for Capitec Bank confirms important VAT principles
- Capitec provides unsecured loans exempt from VAT
- Capitec provides free loan cover to clients in case of retrenchment or death
- CC ruled that loan cover was provided free of charge
- CC clarified that a free-of-charge supply can still be considered a taxable supply
- Loan cover was provided in the course of both exempt and enterprise activities
- Capitec was not entitled to claim full deduction under section 16(3)(c) due to apportionment issue
Source: ensafrica.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.
