Insurance Company Not Paying Vat
You should give the vat back to your insurer.
Insurance company not paying vat. Why do you expect the vat when no repairs have been undertaken and no vat had been incurred think about it. You are only entitled to claim the money you lost which is the cost of repairs excluding vat. So they arrange that the solicitors in this case split the invoice as you described. Under no circumstances should you send it to hmrc.
If the builder is charging you the 16 478 05 then you re covered in full. Your insurance company will not pay out vat where no vat has been incurred by you. Where the insured is a vat registered trader and can reclaim the vat then he is out of pocket by the net amount and that s what the insurance company pays out. In vat speak the recipient of the supply is the persoon who can recover the vat as input tax.
The insurance company being exempt cannot recover the vat. The question is very simply this. Insurance transactions are exempt from vat. It won t go round in the usual circle as the insurance company cannot reclaim it.
I have read that insurance claims are compensation payments for the loss incurred and do not constitute a consideration for any supply made by the policy holder. So it seems that somewhere along the road either the insurance company believes their customer can reclaim the vat or more likely they just got it wrong. The insured party can recover the vat. You should not have raised an invoice to the insurance company.
Of course it s what the policy states that. The insurance company payment to you is compensation for your loss and is not subject to vat. Any vat in all this the vat on buying the units in the first place is a cost to the builder and a consequence of not being vat registered. Where the insured is not vat registered then their loss is the full amount of the bill and the insurance company pays the full amount.
The same practice occurs when damaged cars are repaired. It s not their money. Most insurance claim forms ask the policy holder if they are registered for vat. 22 apr 2009 13 your argument is that i did not get the car repaired so i am not entitled to the vat if i follow this line of thought then i am not entitled to any.
The insurer will either make a tax inclusive or tax exclusive payment to the policy holder depending upon the answer. You can use the vat payment. Normally vat cannot be recovered on goods and services bought in to make exempt supplies see paragraph 7 1for more information. The vehicle has been stolen and the insurance company are paying the client 6 000.
Does the client have to pay 1 000 vat to hmrc on the proceeds received from the insurance company.
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