Global

Details

  • Service: Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 11/27/2013

South Africa - VAT changes for short-term insurance  

November 27: South Africa’s tax authorities issued a ruling concerning the value added tax (VAT) treatment of supplies made and received by short-term insurers.

The ruling (BGR 14, effective 1 November 2013) addresses issues relating to VAT on short-term insurance, including:


  • Clarification on the time of supply in the short-term insurance industry and related transactions
  • Clarification regarding the issue of tax invoices, debit notes, and credit notes when the policy documents contain certain information
  • Guidance on when an insurer may issue recipient-created tax invoices and debit or credit notes
  • Guidance on the zero-rating of insurance relating to international transport, marine, hull insurance and insurance relating to fixed and movable property in an export country
  • Clarification of the VAT treatment for group accident insurance when the employer acts as an agent or as principal
  • Guidance on the documentary proof required in respect of zero-rated supplies and for the claiming of input tax deductions

KPMG observation

Affected insurers may need to make necessary adjustments to their systems and processes to comply with the ruling.


Read a November 2013 blog posting prepared by the KPMG member firm in South Africa: VAT changes present challenges for insurers




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