- VAT ruling VR 008 issued on 15 March 2024 under the Value-Added Tax Act 89 of 1991
- Concerns sections 17(1) and 41B regarding apportionment
- Ruling is specific to the Applicant, a short-term insurance company
- Approves a varied input-based method for apportionment
- Relevant tax laws include sections 1(1), 16, and 17(1) of the VAT Act
- Applicant provides insurance directly to individuals and businesses
- Income streams include premium, interest, dividend, salvage, reinsurance, and fair value adjustments
- Ruling allows exclusion of expenses related to local and foreign reinsurance recoveries
- Subject to Standard Terms, Conditions, and Assumptions by the Commissioner
- Apportionment ratio determined by a specific formula
- Excludes certain expenses from the calculation of VAT incurred
Source: sars.gov.za
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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