• 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

©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

The KPMG logo and name are trademarks of KPMG International.

KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.

The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Direct comments, including requests for subscriptions, to
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.


Share this

Share this


Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)

Already a Subscriber? Login

Not a member? Subscribe now