Excerpt from the Goods and Services Tax Regulation

45. Input tax in relation to capital and revenue expenditure incurred by a registered person shall not be claimed if such expenditure is incurred for:

(c) indirect expenses incurred in the supply of a good or service (expenses not directly attributable);

46. Notwithstanding Section 45 of this Regulation, input tax in relation to capital expenditure incurred in the supply of goods or services by a registered person shall be deducted from the output tax in accordance with Section 37 of the Act in the following manner:

(a) If the capital expenditure incurred by a registered person for the supply of a good or service is directly attributable to such supply, input tax in relation to such expenditure shall be deducted from the output tax in the following manner:

Section 45(c) of the Goods and Services Tax Regulation is hereby repealed, and the stem of Section 46(a) of the Regulation is hereby amended as follows:

46. (a) Input tax in relation to capital expenditure incurred by a registered person shall be deducted from the output tax in the following manner:

As a result of the above amendments to the Regulation, you are not required to make a distinction between direct and indirect expenses in claiming input tax.

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