- Receiving insurance compensation by the company is not subject to VAT taxation
- This transaction does not require VAT tax obligations
- No need to register a tax invoice or reflect this transaction in the company’s declaration
- If the car repair is paid from the insurance compensation and the car is used in business activities, the company can claim a tax credit based on the tax invoice registered by the service station
- No need for compensating VAT obligations if the car is used in VAT-taxable operations
- If the car is used in non-business activities, compensating VAT obligations must be calculated to offset the input tax credit
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.
