This article is to advise the Lloyd’s Market of the introduction of VAT in the UAE and how its application affects Lloyd’s business.
Value Added Tax (VAT) was introduced in the UAE effective from 1 January 2018 and is imposed on goods and services supplied in the UAE. Certain supplies of goods or services may be subject to either a zero (0%) rate or an exemption; however the majority of supplies, including non-life insurance and reinsurance, are subject to the standard rate of 5%.
Lloyd’s underwriters, as foreign insurers, are not required to account for and charge VAT on their insurance and reinsurance premiums. Any applicable VAT obligations will be the responsibility of the local cedant or UAE VAT-registered insured and they will be obliged to account for the VAT due on the premium. Lloyd’s underwriters should ensure that the insured is made aware of their VAT obligations and responsibilities.
If you have any questions or would like to discuss this further, please contact Lloyd’s Tax Department:
Manager, Indirect Tax
t: +44 (0) 207 327 6836
Senior Manager, Indirect Tax
t: +44 (0) 207 327 6852