National Treasury announced an increase in Value Added Tax (VAT) from 14% to 15% effective 1 April 2018.

If you are receiving commission from us, this increase won’t change the total that we pay you (and ourselves) but the vat on that amount will change with effect from 1 April.

Treasury has changed the vat rate but we have quoted on, and the clients have accepted, percentage fees and commission for TSA and the brokers. These figures were inclusive of vat and remain so, it is just that the vat rate has increased.

All new business quotes and annual reviews of existing schemes are being run using a 15% vat rate and so this new dispensation will reach all schemes.

Thank you and regards,
The TSA Team

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All information provided is intended to inform and explain, but please remember to always check the current terms on policies when considering options and advising clients.

(Vol 7. Issue 5)