Purchases or imports of automobiles

VAT input from Purchases or imports of automobiles

Taxpayers shall not be allowed input tax credit (VAT input) for purchases or imports of automobiles, unless the taxable person carries on the business of dealing in, or hiring such automobiles.

The term “Automobile” means any automobile designed solely for the transport of person not exceeding ten in number.

Note:

Small trucks or heavy trucks can claim VAT input because they are used to transport goods.