We are a tour operator, hire cars for clients and charge VAT on the sale.

As we pay VAT on the sale we reclaim the VAT on the purchase.

SARS now telling us we are not allowed to recalim VAT on car hire, I believe they are misunderstanding the rules, Ik understand if it was for our personal transport it would not be reclaimable but its nit it is part of a VAT able sale.

How do I agrue our case ?