The insurance policy you're paying for — does it carry VAT, or is it exempt?
The health insurance and car insurance I take out for my company — do they carry VAT or not?
Health insurance, motor insurance, property insurance, and other general insurance lines all carry the standard 5% VAT rate, meaning the premium you pay has VAT added to it just like any other service, and insurance agent commissions are taxed the same way.
The main exception is life insurance and its related reinsurance, which is treated as fully exempt because it is closer to a financial service with an implicit margin than an explicit fee — and being exempt means the insurer itself cannot recover the input VAT tied to it. If your company holds more than one type of policy at once, RASEEKH can help work out the correct VAT treatment for each one separately.