SARS issued Binding General Ruling 14 (BGR14) on 22 March 2013,
which deals with the VAT treatment of supplies in the short-term
insurance industry. The short-term insurance industry has up to now
relied mainly on rulings issued by SARS in 1991 which formed the
basis of a VAT and short-term insurance manual issued in June
1992.
The short term insurance industry is currently faced by a number
of VAT challenges. One set of challenges has been introduced by
BGR14 which was planned to come into effect on 1 July 2013 but
which will now come into effect on 1 November 2013.
BGR14 introduces a number of challenges or changes when
comparing it to the current (pre 1 November 2013) position. These
include a slight change on the time of supply; documentary
requirements (which may not necessarily have been brought about
solely by BGR14); zero rating of certain insurance services; and
the treatment of insurance excesses for VAT purposes. Short-term
insurers currently account for
