A global insurance group with operations in South Africa, providing a range of risk and insurance solutions across multiple sectors. The business operates within a highly regulated environment, where VAT treatment is often complex due to exemptions and partial inputs.
The VAT legislation applicable to the insurance industry is highly intricate, with many transactions falling into grey areas and subject to specific interpretations. The client had engaged one of the Big Four audit firms to review its VAT affairs—an engagement that extended over a year and yielded only limited recoveries. Given the complexity of the sector, the client sought a second opinion from Blumont, a VAT specialist, with a more focused mandate.
Within a few weeks, Blumont applied its advanced analytical methods to the client’s data and identified several material VAT processing errors that had been overlooked during the audit engagement.
The review led to the recovery of over R105 million (approximately €5 million/ 4.3 million pound ) in unclaimedVAT—far exceeding the initial findings of the general audit.
This case highlights a key insight: while audit firms are responsible for reviewing a client’s broader financial landscape, they are not positioned to provide the depth and focus required for a specialised VAT review. Blumont’s ability to narrow in on VAT-specific risks and opportunities enables it to consistently deliver superior results in this space.
