UAE – Contracts exempted from retroactive VAT
Monday, 01 08 2018, Category: Insurance and Reinsurance, Country: U.A.E
Insurance companies exempted policyholders from paying the Value Added Tax on the remaining period premiums due to the difficulties encountered in collecting it.
Moreover, local insurance companies clarified that they prefer to bear the cost of taxes for the remaining period of contracts that have a low value because it is difficult to set a collection mechanism especially for prepaid contracts.
Furthermore, some insurance experts warned that charging the customer these taxes when the contract is renewed would lead customers to look for another alternative insurance provider especially in the motor insurance branch.