Insurance excess and VAT
KPrice
Registered Posts: 2 New contributor 🐸
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?
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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.
Thanks0 -
What he says - because a VAT registered company can reclaim the VAT element, the insurance company dont pay it.0
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