UAE – Prices will increase with value added tax
Monday, 04 24 2017, Category: Insurance and Reinsurance, Country: U.A.E
Insurance companies in the United Arab Emirates expect motor insurance prices to increase with the application of the value added tax.
According to “Al Khaleej” newspaper, the insurers identified many interrelated factors that will lead to motor insurance price increases such as spare parts and maintenance fees that will witness increases that did not apply before the implementation of the value added tax.
Moreover, it clarified that insurers will have to pay the value added tax on all the goods and services that it buys such spare parts and repair fees, medical fees, legal fees, IT fees as well as actuarial services fees.