Insurance excess and VAT

Options
KPrice
KPrice Registered Posts: 2 New contributor 🐸
in General discussion
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

  • sammyd22
    sammyd22 Registered Posts: 207 Dedicated contributor 🦉
    Options
    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_1984
    Jon_1984 Registered Posts: 186 Dedicated contributor 🦉
    Options
    What he says - because a VAT registered company can reclaim the VAT element, the insurance company dont pay it.

Categories

Privacy Policy