Tax Experts Say VAT will Increase UAE insurance costs

Tax Experts Say VAT will Increase UAE insurance costs

According to Tax Experts, the United Arab Emirates’ (UAE) judgment to impose value-added-tax (VAT) on non-life insurance is expected to push up the cost of property premiums, health, and motor.

Motor Insurance And Health Insurance Costs

The UAE is the largest insurance market in the Gulf Cooperation Council (GCC) region, where motor and health policies value for 70 percent of the market. The Gulf Arab state’s insurance sector got into trouble by the fall in oil prices, and UAE companies have been dealing with the increase in the cost of motor insurance and health insurance.

Back in 2014, the UAE government made it compulsory for all the residents to get health insurance. It also made an immediate hike of 100 percent on the car insurance from 2017 beginning. Read More