Are insurance premiums subject to Value-Added Tax?
What is VAT and how does it work?
Value-added tax (VAT) is a tax on the sale of goods and services and the rate of the tax is changed from year to year, depending on how much is being sold. It is applied to a product only if it has been subject to value-adding before it enters the market. The amount of VAT that the user pays is on the cost of the product, less any of the costs of materials used in the product that have already been taxed. Learn more about VAT, here.
Are insurance premiums subject to VAT?
If you are enrolled in an employer-sponsored health insurance plan, your premiums may already be tax-free. If your premiums are made through a payroll deduction plan, they are likely made with pre-tax dollars, so you would not be allowed to claim a year-end tax deduction.
To learn more about insurance premiums and Value-Added Tax, contact a Standard Health Representative who can help answer any questions and can guide you on your insurance buying journey: 1800-501-3537
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