Vat Increase and your Premiums
The National Treasury announced an increase on Value Added Tax (VAT) from 14% to 15% which comes into effect on the 1st of April 2018 and, as Gap cover premiums are subject to VAT, all clients' premiums will be affected by this change.
The VAT increase and new premium payable will be communicated to all clients via sms during the course of this week. Please also note that applications for cover will also be updated accordingly.
Medical Aid Premiums
The vat increase will however not affect Medical Aid member contributions, and the increase in claims cost associated with the VAT increase will be absorbed by all Medical schemes until end December 2018.