Taxation of Insurance Payments: VAT Exemption Clarified by Odessa Tax Office

• Operations related to insurance payments are not subject to VAT
• Insurance payments are defined as monetary funds paid by insurers in case of an insured event
• The insurance sum is the monetary amount within which the insurer is obligated to make an insurance payment in case of an insured event
• Insurers are financial institutions or branches of non-resident insurers authorized to operate in Ukraine
• Since insurance services are not subject to taxation, VAT is not applicable to insurance payments
• Transactions related to receiving or making insurance payments do not affect tax credits or obligations for insured individuals or insurance companies

Source: od.tax.gov.ua

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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