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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Demonstrate knowledge and application of the Value Added Tax (VAT) Act 89 of 1991 as amended as it applies to insurance policies 
SAQA US ID UNIT STANDARD TITLE
119682  Demonstrate knowledge and application of the Value Added Tax (VAT) Act 89 of 1991 as amended as it applies to insurance policies 
ORIGINATOR
SGB Insurance and Investment 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 4  NQF Level 04 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard replaces: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
10381  Demonstrate knowledge and understanding of the Value Added Tax Act, 89 of 1991as amended as it applies to insurance policies  Level 4  NQF Level 04  Complete 

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended to equip learners who work in insurance with sufficient general knowledge of the VAT Act to allow them to apply VAT to insurance policies. It will be useful for learners across the industry who are required to apply VAT to insurance policies.

The qualifying learner is capable of:
  • Explaining the purpose of VAT.
  • Applying knowledge of VAT legislation to the premium trail and self insured funds.
  • Explaining the application of VAT to cross border trade.
  • Applying knowledge of VAT legislation to the claims trail. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
  • Communication at NQF Level 3.
  • Mathematical Literacy at NQF Level 3.
  • Financial Literacy at NQF Level 3. 

  • UNIT STANDARD RANGE 
    The typical scope of this Unit Standard is The Value Added Tax Act 89 of 1991 as it applies to certain insurance policies. 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain the purpose of VAT legislation. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The concept of VAT is explained with reference to spreading the tax base. 

    ASSESSMENT CRITERION 2 
    Reasons why a government elects to apply VAT or to exempt goods and services from VAT are explained with examples. 

    ASSESSMENT CRITERION 3 
    The importance of the Budget Speech in the application of VAT is explained and an indication is given of the kind of information about VAT that the Budget Speech could contain. 

    ASSESSMENT CRITERION 4 
    The VAT cycle is explained graphically for two different goods or services. 

    ASSESSMENT CRITERION 5 
    Circumstances under which VAT may be claimed back are indicated with reference to businesses domiciled in South Africa and foreign visitors. 

    ASSESSMENT CRITERION 6 
    The difference between a vendor and a non-vendor is explained with examples. 

    ASSESSMENT CRITERION 7 
    The concepts of standard rate, zero rate and exempt are explained with examples. 

    SPECIFIC OUTCOME 2 
    Apply knowledge of VAT legislation to the premium trail and self insured funds. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Circumstances under which a premium may be VAT exclusive are identified with examples. 

    ASSESSMENT CRITERION 2 
    The stages in a premium trail are identified and an indication is given of how VAT is applied at each stage including premiums, commission, fees and policy charges. 

    ASSESSMENT CRITERION 3 
    The application of VAT to self insured funds is explained with reference to deposits with financial services organisations. 

    SPECIFIC OUTCOME 3 
    Explain the application of VAT to cross border trade. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The stages in a premium VAT trail for cross border transportation insurance are identified with reference to premiums, commission, fees and policy charges. 

    ASSESSMENT CRITERION 2 
    The application of VAT legislation to Lloyds is explained in respect of premiums, commission, fees and policy charges. 

    SPECIFIC OUTCOME 4 
    Apply knowledge of VAT legislation to the claims trail. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The terms and conditions of a policy are examined to determine whether the policy is VAT inclusive or VAT exclusive. 

    ASSESSMENT CRITERION 2 
    The payment of a claim without an excess on a VAT exclusive policy is described with examples. 

    ASSESSMENT CRITERION 3 
    The payment of a claim with an excess on a VAT exclusive policy is described with examples. 

    ASSESSMENT CRITERION 4 
    The payment of a claim with an excess on a VAT exclusive policy is calculated for two examples. 

    ASSESSMENT CRITERION 5 
    The payment of a claim with an excess on a VAT inclusive policy is calculated for two examples. 

    ASSESSMENT CRITERION 6 
    The two systems used in the insurance industry to calculate VAT on claims with an excess are explained and an indication is given of which system is most advantageous to the client, SARS and the insurance company. 

    ASSESSMENT CRITERION 7 
    The application of VAT to motor insurance claims is explained with reference to the reclaiming of VAT. 

    ASSESSMENT CRITERION 8 
    The application of VAT to other insurance claims is explained with reference to the reclaiming of VAT. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • This Unit standard will be internally assessed by the provider and moderated by a moderator registered by a relevant accredited ETQA or an ETQA that has a Memorandum of Understanding with the relevant accredited ETQA.
  • An individual wishing to be assessed (including through RPL) against this unit standard may apply to an assessment agency, assessor or provider institution accredited by the relevant ETQA or an ETQA that has a Memorandum of Understanding with the relevant ETQA.
  • Anyone assessing a learner against this unit standard must be registered as an assessor with the relevant ETQA or with an ETQA that has a Memorandum of Understanding with the relevant ETQA.
  • Any institution offering learning that will enable achievement of this unit standard or assessing this unit standard must be accredited as a provider with the relevant ETQA, or with an ETQA that has a Memorandum of Understanding with the relevant ETQA.
  • Moderation of assessment will be conducted by the relevant ETQA according to the policies and guidelines for assessment and moderation of that ETQA, at its discretion, in terms of agreements reached about assessment and moderation between various ETQAs (including professional bodies). 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    N/A 

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO COLLECTING 
    The learner is able to collect, organise and apply information relating to Vat to insurance policies. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is able to communicate effectively in describing the application of VAT in the premium and claims trails. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    This unit standard replaces unit standard 10381, "Demonstrate knowledge and understanding of the Value Added Tax Act, 89 of 1991as amended as it applies to insurance policies", Level 4, 2 credits. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  49649   Further Education and Training Certificate: Long-term Insurance  Level 4  NQF Level 04  Reregistered  2023-06-30  INSETA 
    Elective  66609   Further Education and Training Certificate: Retail Insurance  Level 4  NQF Level 04  Reregistered  2021-06-30  As per Learning Programmes recorded against this Qual 
    Elective  66610   Further Education and Training Certificate: Short Term Insurance  Level 4  NQF Level 04  Reregistered  2021-06-30  As per Learning Programmes recorded against this Qual 
    Elective  66613   Further Education and Training Certificate: Wealth Management  Level 4  NQF Level 04  Reregistered  2021-06-30  As per Learning Programmes recorded against this Qual 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. African Resources & Financial Training (Pty) Ltd 
    2. ALCARI 233 CC T/A ALCARI (Eversdal)(TP) 
    3. Alcari Learning Centre (Pty) Ltd 
    4. BRC Solutions (Pty) Ltd 
    5. CKP Development Agency (Pty) Ltd. 
    6. De Vries Management & Training Services cc 
    7. DSBI (Pty) Ltd 
    8. EJW Financial Services (Pty) Ltd 
    9. Executive People Development Solutions (Pty) Ltd 
    10. Faisit (Pty) Ltd 
    11. Intec College 
    12. Intelligo Solutions Pty (Ltd) 
    13. Invuya Institute of Learning (Pty) Ltd 
    14. Masifunde Training Centre (Pty) Ltd 
    15. Octomate (Pty) Ltd 
    16. Old Mutual Life Assurance Company South Africa 
    17. Outsurance Insurance Company Ltd 
    18. Ray Strodl Consulting (Pty) Ltd 
    19. Ripple Effect 4 (Pty) Ltd 
    20. Sanlam Life Insurance Ltd 
    21. Sanlam Life Insurance Ltd. 
    22. Umfolozi FET College - Central Office 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.