UAE – No mechanism for retroactive VAT
Friday, 01 05 2018, Category: Insurance and Reinsurance, Country: U.A.E
Insurance managers and employees said that insurance companies are facing difficulties in collecting the value added tax on motor insurance contracts issued last year and which are still inforce in the current year noting that there is not a mechanism to pay the tax on contracts issued in year 2017.
Moreover, they mentioned to “Emarat Al Youm” that it is difficult to refer back to all customers and charge them for already issued contracts even though insurers recently added an article saying that it is allowed to collect the VAT retroactively if needed. However, it is worth noting that insurers started contacting companies (group contracts) in order to collect taxes retroactively.
Source: Emarat Al Youm