South Africa Tax Agency Posts Tax Court Judgment on Input VAT Deduction for Insurance Premiums

The South African Revenue Service April 9 posted the Tax Court judgment for Case No. VAT 22558, clarifying the input VAT deduction rules for liability insurance premium payments. The taxpayer was a legal practitioner fund that reimbursed members of the public for attorney theft. The taxpayer deducted input VAT for professional indemnity insurance premium payments. The Tax Agency initially allowed two periods of the deductions, but later disallowed all four periods after an audit, arguing in part that the insurer supplied the taxpayer with no services. On appeal, the Tax Court found that the Tax Agency: 1) had a duty ...