Repairing a car using insurance company funds: what are the consequences for VAT?

• Repairing a car using insurance company funds
• The owner of the car can claim VAT as a tax credit for the repair services paid by the insurance company
• Operations related to insurance services are not subject to VAT
• The amount of insurance payment is determined by the agreement between the insurer and the policyholder
• Tax obligations arise on the date of payment or delivery of goods/services
• A tax invoice must be prepared and registered for each supply of goods/services
• The tax invoice serves as a basis for the buyer to claim tax credits
• The taxpayer is responsible for calculating and paying tax obligations based on the invoice amount

Source: news.dtkt.ua

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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