VAT Charged On Bank Loan Interest Paid?

[Myaimistrue]

I have a car loan in which both the principal AND interest that I pay are subject to a 7% VAT fee! WTH? How is the interest a good or service that is subject to a VAT? It is bank income, but I am paying tax on it? Can anyone please confirm that this is correct?

[Pib]

Here's what my little bit of googling came up with:  Link.

 

A partial quote from the link/document states:

Value added tax: Banks must charge value added tax at the current rate of 7% on services provided, but not on interest demanded or received. 

 

[Myaimistrue]

Here's what my little bit of googling came up with:  Link.
 
A partial quote from the link/document states:

Value added tax: Banks must charge value added tax at the current rate of 7% on services provided, but not on interest demanded or received. 
 

Great, thanks! I had no such luck. I emailed the writer of that article for confirmation, as it is from 2008.

[Naam]

 

Can anyone please confirm that this is correct?

i can confirm that this is a fairy tale

[MYKTHEMIN]

Yes you pay vat on the payments as it is classified as a lease.

[Naam]

Yes you pay vat on the payments as it is classified as a lease.

i reported you "classified as" لتصيد الشرج

 

[MYKTHEMIN]

WTF

[MYKTHEMIN]

 

Yes you pay vat on the payments as it is classified as a lease.

i reported you "classified as" لتصيد الشرج

 

 

What are you on?

[Naam]

 

 

Yes you pay vat on the payments as it is classified as a lease.

i reported you "classified as" لتصيد الشرج

 

 

What are you on?

 

you are either a troll or a total ignorant as far as financial matters are concerned. the OP seeks advice, asked a question and deserves a correct answer not the rubbish you produced.

 

and now i will really report you!

[MYKTHEMIN]

 

 

 

Yes you pay vat on the payments as it is classified as a lease.

i reported you "classified as" لتصيد الشرج

 

 

What are you on?

 

you are either a troll or a total ignorant as far as financial matters are concerned. the OP seeks advice, asked a question and deserves a correct answer not the rubbish you produced.

 

and now i will really report you!

 

look  here halfwit, I have 2 vehicles on finance and you pay vat on them, they are classified as leases here, not loans, clearly you have never had a car or truck on finance, it is clearly shown on the monthly payment statements.

[Myaimistrue]

My GF called The Ministry of Finance and they confirmed that yes, interest paid is subject to a VAT. TIT!

[Naam]

look  here halfwit, I have 2 vehicles on finance and you pay vat on them, they are classified as leases here, not loans, clearly you have never had a car or truck on finance, it is clearly shown on the monthly payment statements.

sorry Mr. Fullwit,

i take it you have a loan from a finance company and not (as the OP stated) a bank loan. then of course it is "witty" to pay VAT.

[Naam]

My GF called The Ministry of Finance and they confirmed that yes, interest paid is subject to a VAT. TIT!

one of the janitors on saturday afternoon shift in the MoF confirmed that or the minister himself?

[Myaimistrue]

My GF called The Ministry of Finance and they confirmed that yes, interest paid is subject to a VAT. TIT!

one of the janitors on saturday afternoon shift in the MoF confirmed that or the minister himself?

I've got my answer now, thanks, but I do appreciate your valuable contributions to this discussion and I will be sure to look for more of your
insightful comments in the future!

[Naam]

 

 

My GF called The Ministry of Finance and they confirmed that yes, interest paid is subject to a VAT. TIT!

one of the janitors on saturday afternoon shift in the MoF confirmed that or the minister himself?

 

I've got my answer now, thanks, but I do appreciate your valuable contributions to this discussion and I will be sure to look for more of your
insightful comments in the future!

 

an "insightful" comment is "look at the weekday and time before you claim your girlfriend talked to somebody in the Ministry of Finance"  

[Myaimistrue]

The evidence will show counselor, that an exact day and time of the call was not given. Wouldn't you agree? Therefore, I request that the charges be dismissed!

[atpeace]

Somebody is having a bad day.  Insults the OP then goes after someone trying to help in the following post.  I think Naam mistakenly thought he responding to the same person because both posters names start with "MY" and look the same.

 

Regardless, chill and why all the hate?

[MYKTHEMIN]

I do not know what is wrong with the idiot, I was stating  facts, one of my car was financed by a bank the other a manufacturer, both were classified as leases and both included vat payments.