With the economic, regulatory and organizational shifts
currently taking place in insurance, industry players face unique
challenges as they prepare for evolving insurance regulations and
look to create opportunities. The most significant change
short-term change is VAT which is likely to be introduced on 1
January 2018.
VAT implications
Insurers must act now because VAT implementation will:
- Introduce mixed VAT liabilities
- Distort potential competition
VAT on insurance premiums
The VAT treatment of insurance premiums has not been confirmed
as yet, but is likely to vary between taxable, zero rated and
exempt. The UAE's Ministry of Finance has confirmed in its
ongoing VAT workshops that general insurance premiums will be
taxable at five percent, while life insurance premiums are
currently planned to be exempt – as is the case in many
economies. If this is ultimately confirmed in the UAE,
