KSA – VAT to be applied retroactively
Monday, 05 07 2018, Category: Insurance and Reinsurance, Country: Saudi Arabia
Insurance companies asked policyholders to pay the value added tax retroactively on contracts issued during last year 2017 and which are still in-force in the current year 2018. Therefore, they will have to pay taxes for the period starting 1 January until the date of the end of the contract.
One of the insurance companies told “Okaz” newspaper that the insurance sector is the only sector allowed to charge taxes on sales completed during year 2017.
Moreover, the reason for imposing the value added tax on the period of 2018 is that insurers have to pay value added tax on the services offered in 2018 such as health services.