The South African Insurance Association has compiled a list of questions and answers to provide guidance in respect of the impact of the change in VAT rate on short-term insurance transactions.
Note from SAIA- 16-May: When this document was prepared and released on 26 March 2018, the insurance industry had applied for a special transitional ruling under Sect. 72 of the VAT Act to alleviate certain difficulties, anomalies and incongruities in respect of transitional arrangements. This ruling has been denied and all reference to this has been deleted from this updated version. It does not change the principles that were set out in the earlier version that remain intact apart from FAQ26 in respect of broker / intermediary fees invoiced after 31 March 2018 for services performed before 1 April 2018 that in terms of the general transitional rules attract VAT at 14%.
Click here to view the updated document.