Insurance

VAT on Insurance Ancillary Services

Charging VAT on non-insurance services provided by the insurer (policy admin fees, surveys).

Account NameTypeDebit ($)Credit ($)
Cash / Receivable (Fee + VAT)Asset (+)116.00-
Service Fee RevenueRevenue (+)-100.00
VAT Output Tax PayableLiability (+)-16.00

💡 Accountant's Note

Pure insurance premiums are typically VAT-exempt in most GCC and MENA countries. However, ancillary fees (policy issuance fees, survey charges, admin fees) may attract VAT as they are not insurance services per se.

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