UAE Value Added Tax (VAT)
Published: 19 Dec 2017
Updated 5 January 2018:
With effect from 1 January 2018, Value Added Tax (VAT), will be payable on clients’ IPMI policies ending in /B or /E (e.g. INTSXXXXX/B or INTSXXXXX/E).
This relates to all premiums for services provided from this date, irrespective of when they were collected.
For example, if a client pays annually for a policy which renewed on 1 June 2017, we are required to collect VAT on the pro-rata premium applicable for 1 January - 31 May 2018.
Over the next few weeks we’ll be sending you the pro-rata invoices for any outstanding VAT. Please pass these on to your clients for payment.
We will also need them to confirm their VAT registration number to us in writing, within 20 days from 5 January 2018. VAT is payable on all premiums for cover with effect from 1 January 2018 regardless of whether they are VAT registered or not.
VAT registered companies can then reclaim the VAT from the UAE Ministry of Finance in their first tax return.
Please contact your usual account manager if you have any questions about this new legislation
Updated 19 December 2017:
On 1st January 2018, it is expected that Value Added Tax (VAT) will be introduced in the United Arab Emirates at a standard rate of 5%. This will be added to any invoices for insurance cover in the UAE commencing on or after 1st January 2018.
This will include new joiners to active policies, as well as new business and renewals on or after 1st January 2018. Formal regulations will determine whether VAT will be due on any invoices issued before 1st January 2018 where the actual supply is on or after the implementation date.
We, therefore, reserve the right to collect any additional amounts due in line with applicable regulatory changes made to Tax laws and any other applicable laws from time to time.
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