Does can insurance have vat on it?

Question

Does can insurance have vat on it?

Answer 1

Hes right you know. No VAT on insurance premiums unless one gets into the inspection cover on engineering policies but that's just me being a smart a55.

Simple answer ... no

xxFJ

Answer 2

Can insurance?

Car insurance doesn't attract VAT, just Insurance Premium Tax.

Answer 3

No - Insurance is subject to 'insurance premium tax' which is mainly 5% (0 for residents of the Channel islands and Isle of Man).

Interestingly the types of policy where insurance premium tax is the same as VAT is travel insurance (bought by anyone) and extended warranty insurance (when bought from stores) as travel agents and electrical goods sellers started charging large amounts for insurance (taxable at 5%) and reducing the amount for the goods (taxed at 17.5%).

As insurance does nt have VAT on it insurance companies cannot recover VAT on the costs of repairs they pay - this means that if a company is VAT registered (and so can claim back the VAT) the insurance company won't pay it.