- South African Revenue Service issued Binding General Ruling No. 14, clarifying VAT treatment of short-term insurance supplies
- Ruling clarifies definition of key terms, VAT treatment for short-term insurance supplies, and VAT deduction rules for group personal accident insurance
- Insurance supply timing based on premium receipt, not invoicing
- Insurers must apply zero-rated VAT to certain types of insurance for international transport
- Insurers not required to pay output tax on amounts recovered from third parties
- Policy documents serve as tax invoices, credit, and debit notes for insurance transactions
- Zero-rating and deductions in the ruling conditional upon obtaining required documentary proof
Source: news.bloombergtax.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
