South Africa Tax Agency Issues Binding General Ruling Clarifying VAT Treatment of Short-Term Insurance Supplies

The South African Revenue Service May 22 issued Binding General Ruling No. 14, Issue No. 4, clarifying the VAT treatment of short-term insurance supplies, due to amendments to the VAT Act effective Jan. 1. The ruling clarifies the definition of key terms, VAT treatment for short-term insurance supplies and intermediary services, and VAT deduction rules for group personal accident insurance. The ruling clarifies that: 1) insurance supply timing is based on premium receipt, not invoicing, and allows zero-rating for international transport insurance; 2) insurers must apply zero-rated VAT to stock throughput insurance for international transport, standard VAT for goods within ...