How will the increase in VAT be implemented across Discovery?
On 21 February 2018, Finance Minister Malusi Gigaba announced a one percentage point increase in value-added tax (VAT) from 14% to 15%, effective from 1 April 2018.
How will the increase in VAT be implemented across Discovery?
1. There will be no change to contributions/premiums for Discovery Health Medical Scheme, Discovery Life, Discovery Vitality, Discovery PrimaryCare, and Discovery Gap Cover.
- Discovery Health Medical Scheme contributions will remain unchanged, and the increase in claims cost associated with the VAT increase will be absorbed by the scheme until end December 2018.
- Discovery Life premiums will remain unchanged.
- Discovery Vitality, Discovery PrimaryCare and Discovery Gap Cover will absorb the VAT change for 2018, so members and clients will experience no increase.
- The new VAT rate will be considered as part of all regular year-end review processes.
2. Discovery Insure premiums, and Discovery Invest and Discovery Card fees will reflect the VAT update from 1 April 2018
- Discovery Invest fees will be updated on the system from 1 April 2018. While some documentation may still reflect the 14% rate initially, they will be updated to the new rate in due course.
- Discovery Insure premiums will include the updated VAT rate from April 2018.
- Discovery Card account fees will also be adjusted from 1 April 2018. For more information on the updated fees for Discovery Card, please see the updated fee document
The Discovery Health Medical Scheme is an independent non-profit entity governed by the Medical Schemes Act, and regulated by the Council for Medical Schemes. It is administered by a separate company, Discovery Health (Pty) Ltd, an authorised financial services provide
Related articles
The tax implications of 3 popular investment vehicles
One of the first questions any savings-savvy investor asks a financial adviser is: "What's the most tax-efficient choice for my investment?" In this article, we take a look at a few investment vehicles and highlight the tax implications of each investment.
4 ways a retirement annuity can save you thousands in tax
Want to learn how to calculate your retirement annuity tax relief? Read on to find out, as well as four ways in which retirement annuities can help you save for your family's future.
Be network-savvy to avoid unexpected healthcare costs
No one likes unexpected costs and extra admin if they can help it, so it makes sense to take advantage of healthcare networks whenever you can. By tapping into network arrangements, you can cut down on unexpected co-payments. Here’s how.