Capitec warns of ripples from VAT dispute with Sars
Bank says stance on loan cover VAT will hit lower-income people with restricted access to credit
Capitec has warned that should the SA Revenue Service (Sars) have its way in their VAT dispute (https://www.businesslive.co.za/bd/companies/financial-services/2022-06-22-sca-orders-capitec-to-pay-sars-r715m-over-failed-vat-claim/), it will lead to credit becoming more expensive not only for its 20-million customers but the whole banking sector.
The bank, a dominant player in the unsecured credit market, says in court papers before the Constitutional Court, seen by Business Day, that the Sars decision to reject its R72m VAT deductions on loan insurance payments, which the bank received to protect it against default by retrenched or dead clients, will have far-reaching effects on the industry...
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