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Insurance excess and VAT

KPriceKPrice Just JoinedRegistered Posts: 2
One of our fleet drivers required their windscreen repaired under the fleet insurance policy. I have now received an invoice: excess £0.00, VAT £20.00. Is anyone able to explain what is going on here?

Comments

  • sammyd22sammyd22 Well-Known Registered Posts: 207
    KPrice wrote: »
    One of our fleet drivers required their windscreen repaired under the fleet insurance policy. I have now received an invoice: excess £0.00, VAT £20.00. Is anyone able to explain what is going on here?

    I think this a specific agreement with the Insurance Industry.

    What happens is the Insurance company pay the Net Figure for, Lets say a Vehicle Repair and your company pays the VAT for the actual repairs, Which is then reclaimed by your company.

    We sometimes receive invoices of Excess = £500 & Vat = £850

    This is because the Vat is calculated on the actual repair cost of which the Net is payable by the Insurance company.

    I think this is correct.

    Thanks
  • Jon_1984Jon_1984 Well-Known Registered Posts: 186
    What he says - because a VAT registered company can reclaim the VAT element, the insurance company dont pay it.
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