In all honesty I am not so sure that you are actually correct:No wonder the insurance only paid out only R500 000= for the vehicle and not R570 000=....
Which will be the correct procedure, no one is to gain from theft, the R500 000= replaces the original value of the vehicle lost for economical purposes, maybe that is just a bit hard to figure out...
"Some examples of exempt supplies include the following:
o financial services (e.g. interest earned for the provision of credit, life insurance, the services of benefit funds
such as medical schemes, provident, pension and retirement annuity funds);o donated goods or services sold by non-profit bodies (e.g. religious and welfare organisations);
o residential accommodation in a dwelling (but not holiday accommodation);
o passenger transport in South Africa by taxi, bus, or train;
o educational services provided by recognised educational institutions which are exempt from income tax in
terms of section 10(1)(cN) of the Income Tax Act, 1962 (e.g. primary and secondary schools, universities
and technikons); and
o certain childcare services (i.e. crèches and after-school care centres)."
Please explain how the insurance pay out can be exempted as the person paying the insurance seem to be paying VAT on the mentioned product...