Insurance excess and VAT

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