29 Dec 2023
Press Release All Insurance Services Exempt
Comptroller of the Inland Revenue Department (IRD) advises on amendments to the Goods and Services Tax (GST) Act to permit all insurance services to be exempt effective Thursday 7th December, 2023.
Persons should be guided as follows:
- Exemption of Insurance Services from GST: All insurance services are now exempt from GST. Insurance providers registered for GST should stop charging GST on any insurance services supplied.
- Input Tax Credits: Insurance entities providing only exempt supplies cannot claim any GST input tax credits after the passage of the Act.
- Cancellation of GST Registration: Insurance service providers are required to cancel their GST registration. This is done by completing the GST Application for Cancellation Form available on the Inland Revenue Department's website, which can be downloaded from the “Forms and Guides Section”.
- Filing of Outstanding Returns: Before deregistration, all outstanding GST returns must be filed and any due payments made.
- Deregistration Process: After deregistration is approved, the GST Certificate must be removed from public display and returned to the Inland Revenue Department.
- Audit Requirement: An audit will be conducted prior to deregistration. The IRD Audit Team will make contact in the first quarter of 2024 for this purpose.
- Filing “Nil” Returns: Entities are required to file “nil” returns for the period up to the completion of the deregistration process, especially for the December 2023 tax period, to avoid penalties.
- Continued Registration for Other Taxable Supplies: Entities engaged in other taxable supplies and meeting the GST registration threshold must remain registered and continue the usual GST processes for those supplies.
- Consumer Advisory: Consumers should not pay GST on any insurance policies, contracts, or transactions initiated after the amendment.
Insurance providers and consumers should be aware of these changes to ensure compliance and avoid any unnecessary charges or penalties. For more information, contact the Department at email@example.com or firstname.lastname@example.org , and visit their website and Facebook page for current publications on GST.
Full press release document can be found here: Press Release All Insurance Services Exempt From GST