From 1 May 2025, VAT will increase from 15% to 15.5%, irrespective of the National Budget approval. An Industry Tax/VAT Workgroup (of which the FIA are member) together with SAIA, is working on expert guidance and FAQs to support members through this transition.
SAIA Position
The South African Insurance Association (SAIA) issued a Circular to its members confirming that the rate increase is effective from Thursday, 1 May 2025 together with a communication from the Financial Sector Conduct Authority (FSCA) regarding the application of Short-Term Insurance Policyholder Protection Rules (PPR) 11.6.3 and 11.6.4.
Industry Response
An Industry Tax/VAT Workgroup (of which the FIA are members) together with SAIA are considering the urgent appointment of a VAT expert, as has been the case on all previous VAT increases/issues, to assist in the drafting of guidelines and a Frequently Asked Questions document which will be communicated to members as soon as it is available.
Should you have any questions please address these to Brad Frank at brad@fia.org.za.
A copy of the SAIA Circular and FSCA communication can be found, here.
