Insurance

Insurance Premium Tax (IPT) Collected

Collecting insurance premium tax from policyholders and remitting to the tax authority.

Account NameTypeDebit ($)Credit ($)
Cash / Premium Receivable (IPT Component)Asset (+)48.00-
IPT Payable (Tax Authority)Liability (+)-48.00

💡 Accountant's Note

In some jurisdictions, insurance premiums attract a specific Insurance Premium Tax (distinct from VAT). The insurer collects it on behalf of the government. It is not the insurer's revenue — it is a tax pass-through liability.

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