Liability ― insurance ― overview

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

A supply of insurance is a supply of services and is exempt from VAT. The VAT exemption for insurance also applies to the services of an insurance agent or an insurance broker acting in an intermediary capacity in relation to insurance.

This guidance note provides an overview of the:

•
scope of the VAT exemption for insurance
•
entitlement of insurers, insurance agents, insurance brokers and insurance policy holders to recover VAT on costs
•
VAT treatment of insurance payments received by policy holders

In-depth commentary on the insurance exemption can be found in De Voil Indirect Tax Service V4.121 to V4.124.

Overview of the scope of the VAT exemption for insurance

The VAT legislation provides for exemption to apply to:

•
insurance transactions and reinsurance transactions
•
the services of an insurance agent or an insurance broker acting in an intermediary capacity in relation to a contract of insurance or reinsurance regardless of whether the contract is concluded

VATA 1994, Sch 9, Pt II, Group 2

Whether the VAT exemption for

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Popular Articles

Employment Tax

Company cars

Company carsIntroductionCompany cars are one of the most common taxable benefits. The rules for calculating the benefit are complex, and the reporting requirements are more onerous than most benefits. Company cars are covered by very specific legislation. Detailed guidance on each of the following

14 Jul 2020 11:15 | Produced by Tolley Read more

Owner-Managed Businesses

Relief for employee share schemes

Relief for employee share schemesRemuneration expenses are generally deductible for corporation tax purposes as they are considered to be incurred wholly and exclusively for the purposes of the trade. However, expenses relating to shares are usually classed as capital and are therefore not

14 Jul 2020 13:21 | Produced by Tolley Read more

Exemption ― insurance ― overview

Exemption ― insurance ― overviewThis guidance note provides an overview of the VAT treatment of insurance products and should be read in conjunction with the Insurance ― specific transactions and Exemption ― insurance ― brokers and agents guidance notes.Is insurance exempt from VAT?Supplies of

��˾��ҹ��