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

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