Value Added Tax Frequently asked questions

For a question on any of our products you can search our FAQ section below. If you’re unable to find an answer to your question here, speak to one of our dedicated insurance advisors on 800 RSA (772) or email us directly on rsadirect@ae.rsagroup.com

1.What is VAT?

VAT (Value Added Tax) is an indirect tax which will be introduced across UAE with effect from 1st January 2018 at a standard rate of 5% on all ‘Taxable Supplies’

2.Is VAT applicable to insurance?

Yes, VAT is applicable to insurance. All insurance products will be subject to VAT at the standard rate of 5% or zero- rated, except Life Insurance which is exempt. Motor, Property, Liability, Engineering, Personal Accident types of insurance will attract VAT at standard rate of 5%

3.How will VAT be calculated?

VAT will be charged on your final insurance premium and the total amount (inclusive of VAT) needs to be paid by a policy holder to RSA

4.What is RSA’s Role?

RSA will collect the VAT from all policy holders for the insurance services provided and will remit this amount to the UAE’s Federal Tax Authority (FTA)

5.Who needs to have a VAT Registration with FTA?

For companies, the mandatory VAT registration threshold on annual turnover of taxable supplies will be AED 375,000 and the voluntary threshold will be AED 187,500. Once you have obtained the VAT registration certificate please email it to RSA.VAT@ae.rsagroup.com stating your policy number

And if you are an individual and not carrying on an Enterprise, you are not required to register for VAT with FTA.

6.Is RSA VAT Registered?

Yes, RSA is VAT registered and our registration no is 100000847200003. Our certificate of registration can be viewed below

7.Will VAT apply for new policy only or will it apply on renewals too?

VAT will apply on both new and renewal policies

8.If the policy is cancelled in 2018 will there be a Tax refund?

Yes, only if VAT has been charged and you have paid the VAT amount, we will refund the premium and VAT