Page 32 - PowerPoint Presentation

Deemed Supplies

Indemnity Payments

 Amount is received for loss suffered in the normal course of business
AND

 Amount is received in terms of a contract AND

 The amount is NOT received for replacement of asset or reinstatement

of an asset upon which input VAT was denied

Output VAT will be charged

Timing of the supply : When the payment is received by the
insured / the 3 party suffering a loss
rd

Not applicable when:

• Supply of services contemplated by the insurance contract are not taxable
supplies; OR
• Total reinstatement of stolen goods or goods damaged beyond economic

repair and an input tax deduction was denied
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