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Can you claim VAT on business insurancein the UAE?

Last reviewed

Can you recover the VAT?
Depends
VAT charged
5% or none
Corporate tax
Deductible

Recoverable on business cover and staff health insurance. Life insurance carries no VAT.

Still being confirmed. The November 2024 change covers health insurance for an employee's spouse and up to three children under 18. How it applies beyond that is still being confirmed, so treat other family cover as blocked.

When you can claim the VATand when it's blocked

You can claim

  • Business insurance (property, vehicle, liability, cyber) carries 5% and is recoverable.
  • Life insurance is exempt, so there's no VAT.
  • Employee health insurance is recoverable, and since November 2024 that extends to cover for an employee's spouse and up to three children under 18.

You can't claim

  • Cover for other family members beyond those limits, and personal policies, are blocked.

Worked examplesand why they land that way

  1. Recoverable

    Office property insurance

    General business insurance is standard-rated, so the 5% on the premium is recoverable.

  2. No VAT to recover

    Group life cover

    Exempt, nothing to claim.

    Life insurance is exempt, so the premium carries no VAT to recover.

  3. Recoverable

    Health insurance for an employee and two children

    Since November 2024, VAT on health insurance for an employee's spouse and up to three children under 18 is recoverable, as well as the employee's own cover.

What to keepand what to watch

Documents you need

Tax invoice from the insurer with TRN.

Corporate tax

Deductible.

GL account: Insurance: general / Staff medical insurance

Common mistakes

Assuming all insurance is 5%. Not claiming VAT on dependents' health cover now allowed.

What changed recently

Nov 2024 amendment widened recovery on employee family health insurance.

Questions peopleask about this

Which business insurance carries VAT?

Property, vehicle, liability, and cyber insurance are standard-rated at 5%, and the VAT is recoverable.

Is there VAT on life insurance?

No. Life insurance is exempt.

What changed in November 2024?

VAT on employee health insurance became recoverable for an employee's spouse and up to three children under 18, as well as the employee. Cover for other family members, and personal policies, are still blocked.

Relatedexpenses

Rules thisanswer relies on