Irish Revenue Issues Guidance on VAT Exemption for Extended Warranties Treated as Insurance

• Irish Revenue issued new guidance clarifying the VAT treatment of extended warranties.
• Extended warranties are considered VAT-exempt insurance services if they meet the definition of insurance (provider undertakes, for payment, to repair/replace goods if risk materializes).
• Manufacturer’s warranties are not treated as insurance for VAT purposes.
• Example provided: Retailers selling extended warranties that cover repair/replacement for a fee are supplying a VAT-exempt insurance service.

Source: regfollower.com

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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