South Africa’s tax authorities have issued a ruling addressing the value added tax (VAT) treatment of supplies made and received by short-term insurers. The following issues are focused in the Ruling.
- 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; and
- Guidance on the documentary proof required in respect of zero-rated supplies and for the claiming of input tax deductions.
