7.4.d. Is a dealer entitled to an input tax credit on a second-hand vehicle acquired from an unregistered entity when the subsequent supply by the dealer is a GST-free export?
Non-interpretative - straight application of the law.
A dealer is not entitled to an input tax credit in these circumstances. The GST Act precludes an input tax credit if the dealer acquires a second-hand vehicle from an unregistered entity and makes a supply that is not a taxable supply. Where the supply of the vehicle is a GST-free export the dealer is not entitled to an input tax credit on the acquisition.