Liability ― insurance ― provided with goods and services

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note examines the liability of insurance when it is provided in conjunction with other goods and services.

For an overview of insurance more broadly, see the Liability ― insurance ― overview guidance note.

For in-depth commentary on insurance and the insurance exemption, see De Voil Indirect Tax Service V4.142.

Insurance provided with goods and services ― the basics

If insurance is provided with goods and services it is important to identify whether there is a single supply or more than one supply and in each case whether there is a supply of insurance. This is important because it will affect the VAT treatment of what is supplied. This guidance note is intended to help the reader identify:

•
is there a single supply or more than one supply?
•
if there is a single supply, is insurance the main element or an ancillary element of the supply?
•
if there are two or more supplies, is insurance one of the supplies?
•
if there is a supply of insurance,

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