VAT on Insurance Premium

We have recovered VAT on insurance premium paid to the insurance company. We were later told by our consultant that for Dubai based entities, portion of VAT paid for employee’s dependents cannot be recovered. What do we do now? How should we pay back the VAT that we have already recovered? Would there be any penalty?

SAJITH NAIR14/01/2020 10:38:25

One case reverse the input claim in Box 9 itself in the current period if the VAT involved is AED 10,000 or less in the tax period in which this was claimed. if its more than this, then you will need to submit a Voluntary Disclosure for which penalties would apply

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Alex fine14/01/2020 21:59:35

Same case with us. Our insurance vendor does show breakdown of insurance related to dependents, so we claimed full vat. It should be responsibility of insurance vendor to provide such segregation when raising invoice for ease of Tax Authorities as well as insurees.

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SAJITH NAIR14/01/2020 23:12:59

You should insist the insurance provider to provide the list it covered personnel...they posses the information since that is how they arrive at the premium amount...i have encountered many cases where the list is not received only coz the company does not insist on this

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