Value Added Tax (Exemption) Regulations

Value Added Tax (Tax Period) Regulations


(under section 77)

(14th June, 2002)



   1.   Citation

   2.   Interpretation

   3.   Financial services

   4.   Medical services

   5.   Education services

S.I. 44, 2002.

1.   Citation

   These Regulations may be cited as the Value Added Tax (Exemption) Regulations.

2.   Interpretation

   In these Regulations, unless the context otherwise requires

   "exempt supply" means goods or services exempt from tax in terms of section 11; and

   "life insurance contract" means any contract of insurance made or agreed to be made by an insurer classified under section 37 of the Insurance Industry Act as transacting long term business.

3.   Financial services

   (1) The following financial services shall be exempt from tax, except to the extent that they are rendered for a fee, commission, or other similar charge other than discounting cost, in which case the fee, commission or other similar charge shall be subject to tax-

   (a)   granting, negotiating, or dealing with loans, credit, credit guarantees, or any security for money;

   (b)   the management of loans, credit, or credit guarantees by the grantor;

   (c)   transactions concerning money, such as deposits, payments, transfers of money, debts or negotiable instruments;

   (d)   transactions relating to financial derivatives, forward contracts, options, or similar arrangements;

   (e)   transactions relating to shares, stocks, bonds, treasury bills, unit portfolios, or other debt or equity securities, other than custody services;

   (f)   the provision, or transfer of ownership, of an interest in a scheme whereby provision is made for the payment or granting of benefits by a benefit fund (including a medical aid or other similar fund), provident fund, pension fund, retirement annuity fund, or preservation fund;

   (g)   the arranging of any of the services referred to in subparagraphs (a) to (f) and paragraph 2; or

   (h)   the provision of intermediation services by a medical aid fund or similar fund.

   (2) Notwithstanding the provisions of subregulation (1), the provision of, or transfer of, ownership of a life insurance contract or the provision of reinsurance in respect of any such contract, shall be an exempt supply in terms of paragraph 2 (a) of the Second Schedule.

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