- The 50% VAT deduction cap for motor vehicles not used exclusively for business applies when determining the base VAT amount eligible for deduction.
- If the taxpayer has mixed activities (taxable and non-taxable) and the expense can’t be allocated solely to taxable transactions, the pro rata calculation under the VAT Act is applied to the already capped VAT amount.
Source: kpmg.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.
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