Payment/Exemption of VAT on product warranties

geek84

Hi folks

I am doing the AAT certificate stage. One of the questions that I need to answer is that a company sells electronic goods both at home and other EU countries. The company is now thinking of extending their services by providing warranties to consumers. This would involve providing service & maintenance support to consumers.

I have been told that this would be exempt from VAT. If that is true, can the input VAT be reclaimed back?

Thanks in advance for your response.