Tax Credit for Car Repair Paid by Insurance Company: VAT Implications Explained

• When a car owner receives repair services paid for by an insurance company, the VAT amount for such operation is considered a tax credit and separately recognizes conditional VAT liabilities
• Operations related to insurance services are not subject to VAT according to the Tax Code of Ukraine
• Insurance payout is the money paid by the insurer in case of an insured event according to the insurance contract and/or legislation
• The tax liability date for goods/services supply is determined by various events such as payment receipt, goods shipment, or service provision
• Taxpayers must prepare an electronic tax invoice with a qualified electronic signature on the tax liability date according to the law on electronic identification and trust services.

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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