1. Supply of short-term insurance
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You don't have to issue a tax
invoice, credit or debit note, for the supply of short-term insurance.
But there are conditions to this, with the policy document requiring the following information:
· Your name along with the name of the client;
· Your client's address, VAT number and the policy number;
· A statement confirming SARS' direction that they're allowed to tell a vendor to issue a tax
invoice, or a credit note, or a debit note, in a different format than usual, as according to section 20(7) and section 21(5) of the VAT Act.
· If your client is a VAT vendor who wishes to deduct the VAT he pays as input tax,
then you must have a statement informing her that for VAT purposes, she must have the policy document along with proof that the premium has been paid (for example, bank statements); and
· The amount of the premium, which indicates either the value of thee supply , amount of VAT and the total amount OR the total premium including VAT and a statement saying that VAT's included.
2. Supply of intermediary services:
SARS says that the bordereau or a commission statement, which the intermediary gives you for providing their services, doesn't have to contain the words 'tax invoice', 'credit note' or 'debit note', as required within the VAT Act.
*To learn much more fantastic information on dealing with VAT and short-term insurance, check out chapter I 17: Insurance: VAT
Treatment in Short-term Insurance
in your Practical Guide to VAT Loose Leaf Service
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