PART 4: EXEMPT SUPPLIES s12 FINANCIAL s12(a) EXAMPLES OF FINANCIAL SERVICES: of currency •exchange SERVICES of ownership of a / member’s interest •transfer of debt security or provision of credit •issue payment, collection or transfer of •issue, ownership of a cheque or letter of credit an interest bearing loan •providing and proceeds of long term insurance •premiums policies or transfer of ownership in •provision superannuation scheme (pension, provident, retirement annuity, medical aid) of derivatives and options •buying DO NOT INCLUDE: All fee-based financial services Underwriting issue of a share / member’s interest Consideration payable on renewal or variation of financial agreements relating to debt security Rental agreement payments Merchant’s discount (Charge made to a merchant for accepting a credit or debit card) Supply of a cheque book THE ZERO-RATING OF FINANCIAL SERVICES (WHEN PERFORMED OUTSIDE SA OR TO A NON-RESIDENT NOT PHYSICALLY IN SA) TAKES PRECENDENCE OVER EXEMPTION eg: 32.19 DONATED GOODS & 12(b) supply of donated goods or services by an association not for gain, or SERVICES supply of goods made or manufactured from material of which 80% of the value was donated eg 32.20
PART 4: EXEMPT SUPPLIES s12 FINANCIAL SERVICES s12(a) EXAMPLES OF FINANCIAL SERVICES: •exchange of currency •transfer of ownership of a / member’s interest •issue of debt security or provision of credit •issue, payment, collection or transfer of ownership of a cheque or letter of credit •providing an interest bearing loan •premiums and proceeds of long term insurance policies •provision or transfer of ownership in superannuation scheme (pension, provident, retirement annuity, medical aid) •buying of derivatives and options DO NOT INCLUDE: All fee-based financial services Underwriting issue of a share / member’s interest Consideration payable on renewal or variation of financial agreements relating to debt security Rental agreement payments Merchant’s discount (Charge made to a merchant for accepting a credit or debit card) Supply of a cheque book THE ZERO-RATING OF FINANCIAL SERVICES (WHEN PERFORMED OUTSIDE SA OR TO A NON-RESIDENT NOT PHYSICALLY IN SA) TAKES PRECENDENCE OVER EXEMPTION eg: 32.19 DONATED GOODS & SERVICES 12(b) supply of donated goods or services by an association not for gain, or supply of goods made or manufactured from material of which 80% of the value was donated eg 32.20
VAT-Notes-1-Part-1-4.docx