UAE: Insurers urged to form technical panel to study VAT impact
Source: Middle East Insurance Review | May 2017
The UAE Insurance Authority has asked insurers to form a technical committee made up of company representatives to study the effects of the application of VAT on their operations.
A 5% VAT is set to be introduced in the UAE and the other GCC countries. The GCC states have one year starting from 1 January 2018 to introduce VAT. While there will be exemptions, including for foodstuffs and other essential service sectors such as healthcare and education, the VAT will be imposed on a range of goods and services, including financial services.
Insurers have made several requests to the Emirates Insurance Association (EIA) for a review on the repercussions and consequences of the imposition of VAT on the industry, reported Al Khaleej.
Several insurers have asked the EIA to lobby for exemption from VAT for insurance or at least have a grace period to allow insurers to make the necessary transition, including revising insurance premiums and updating their electronic systems to accommodate the tax.
The EIA has called for a meeting of experts from the legal and finance departments of insurers to discuss the issue. M