Under the UAE VAT regime, the insurance and related services are subject to the standard VAT rate at 5%. Also, the VAT incurred on costs that can be wholly attributed to the standard-rated supply can be recovered in full. Yet, there are exempted supplies and zero-rated supplies within the insurance services that the businesses need to be aware of. For example, life insurance and life reinsurance are treated as exempt supplies under VAT in UAE.
Source: jcauaeaudit.com
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