Vat

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TALLY
TALLY Registered Posts: 22 New contributor 🐸
in AAT Level 3 (Level 6 in Scotland)
Vat
Hi everyone,

Merry Christmas, I hope Father Christmas is good to you.

My question is, if you are a VAT registered company and have been over charged for building insurance and need to claim it back, would you include VAT on your invoice? The company who has over-charged is VAT registered. I'm not sure with it being building insurance.

Thanks for replies.

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  • rjww85
    rjww85 Registered Posts: 20 New contributor 🐸
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    In any normal instance there is no VAT on insurance as it is outside the scope and doesn't get included on the VAT return.

    There is however a insurance premium tax of 5% on insurance which many people confuse as being VAT.

    So in this instance they should just raise an invoice to reclaim the difference of the insurance overpayment.
  • lgarside
    lgarside Registered Posts: 122 Dedicated contributor 🦉
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    Vat

    Hi Just out of interest in this example Could the company who has overcharged issue a credit note? Or does the company who received the building insurance have to issue an invoice to the building insurance company?
  • farmergiles
    farmergiles Registered Posts: 1,685 Beyond epic contributor 🧙‍♂️
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    In my humble view, the insurance company should issue a credit note/ refund cheque.

    Kind regards
    Peter
  • TALLY
    TALLY Registered Posts: 22 New contributor 🐸
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    It's rather a long winded scenario. I have invoiced them now. Thanks everyone for replies.

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