- VAT ruling VR 013 issued on 30 May 2025 under the Value-Added Tax Act 89 of 1991
- Concerns zero-rating of medical health insurance cover
- Ruling applies only to the Applicant and SARS
- Confirms premiums for medical health cover for employees of foreign employers qualify for zero percent VAT
- Relevant section of the VAT Act is 11(2)(ℓ)
- Applicant is an insurer providing short-term insurance cover
- Insurance covers employees and dependents residing outside South Africa
- Covers medical emergencies including evacuation, treatment, and repatriation
- Premiums charged in foreign currency and payable annually in advance
- Subject to standard terms and conditions by SARS
- Ruling allows zero-rating if services are supplied directly to foreign employers not present in South Africa
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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