Impact of VAT increase effective 1 April 2018

National Treasury announced an increase in Value Added Tax (VAT) from 14% to 15%, to take effect on the 01 April 2018.

Although the increase to the end consumer of 1% can be seen as relatively small, as part of the bigger picture the potential amount of time, resources and effort  affecting the entire short term insurance industry is massive – the impact will be felt by all.

Premiums are quoted exclusive of VAT which means member premiums will automatically go up by the 0.88% on 1 April 2018. 

Click here and find out about the impact of the vat increase