Summary
- SARS issued BGR 75 on 30 June 2026, clarifying VAT treatment of ambulance services under sections 12(g) and 10(22) of the VAT Act. [sars.gov.za]
- Public passenger transport (road/rail) is VAT‑exempt to protect price‑sensitive low‑income commuters; the ruling explains whether ambulance services fall within this exemption. [sars.gov.za]
- Otherwise, supply of services in the course of enterprise is subject to VAT at the standard 15% rate under section 7(1)(a). [sars.gov.za]
Extended article
On 30 June 2026 the South African Revenue Service issued Binding General Ruling (VAT) 75, clarifying whether the exemption for public passenger transportation under section 12(g) of the VAT Act 89 of 1991 applies to ambulance services. The ruling recalls that when VAT was introduced in 1991, the public passenger transport exemption was designed to shield low‑income consumers heavily reliant on price‑sensitive bus, rail and taxi services. It confirms that the underlying policy has not changed and analyses ambulance services against this backdrop, concluding on their correct VAT treatment (standard rate vs. exempt). [sars.gov.za]
Source:
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