Do you have any questions about life or medical insurance? Go through our list of Frequently Asked Questions, click on the topic and get the answer you are looking for. Can’t find it? Please don’t hesitate to contact us.
Value Added Tax (or VAT) is a tax on the sale of most goods and services. The UAE and Saudi Arabia have confirmed that VAT will be implemented on 1 January 2018, whilst the other Gulf Cooperation Council (GCC) countries will follow soon after (Bahrain, Qatar, Kuwait and Oman).
VAT is an indirect tax. An indirect tax is a tax which is collected from customers by businesses (e.g. MetLife) and is passed on to the government. This tax will be used by the government to pay for public services- hospitals, schools etc.
The default VAT rate will be the standard rate of 5%. Some goods and services will be subject to VAT at 0%, and others will be exempt from VAT or outside the scope of VAT altogether.
A VAT registered business will charge and add VAT to the value of goods and services provided to customers. The VAT is collected by the business and paid to the Tax Authorities.
For new policies issued after 1 January 2018, if the product is subject to VAT, the premium payment will be subject to an additional 5%. This VAT will be paid by MetLife to the tax authorities.
The UAE Tax Authorities have yet to announce what exact insurance products will be subject to VAT, although we understand that life insurance will not be subject to VAT (i.e. VAT exempt), but non- life insurance will be subject to VAT at 5%.
If your policy will be subject to VAT (i.e. non-life policies), we will send to you a follow-up communication with the details of the new premium.
We do not expect VAT to affect the entitlements under your plan.
Yes, if VAT was charged on the premium and you have paid the VAT amount, we will refund the premium and VAT. However, no VAT will be refunded if there was no VAT charged on the initial premium.
If you as an individual move out of the UAE but within the GCC, VAT will still apply. If however you move outside the GCC subject to providing proof of change in address, as well as other proof which may be stipulated by the Tax Authorities, no VAT will be charged on your policy.