VAT on windscreen replacement

stulaunch

Recently had windscreen replaced on my van. I am VAT registered and asked for VAT receipt.
Came back as following

GOODS TOTAL 75.00

VAT @ 20.00 % 30.67

INVOICE TOTAL 105.67

PAYMENT RECEIVED 105.67

AMOUNT DUE 0.00

Am I missing something here? Surely it should be £90 total?

user1977

The figures certainly don't make sense, but we don't know how much you were expecting to pay - or how much you actually paid.

neilmcl

No something doesn't add up there. I'd be questioning why you've been charged over twice the amount in VAT.

NSG666

When you are VAT registered don't you pay VAT on the total repair cost as you are able to claim it back? I'd expect it to be clear on your invoice though so HMRC can see the breakdown e.g. total cost £153.35+£30.67vat = £184.02, you pay £75 excess plus 100% VAT and the insurer pays the balance of £78.35

Sandtree

The 20% isnt on the £75 excess but on the total cost of the repair, what the invoice is missing, because the insurer is settling it less the excess, is the net cost of the windscreen

Windscreen	153.35
Vat	30.67
Total	184.02
Insurer contribution	78.35
Excess	75.00
Total Outstanding	105.67

Thrugelmir

Insurance companies are unable to recover VAT so pass the liability to their customer. 

stulaunch

Sandtree said:

The 20% isnt on the £75 excess but on the total cost of the repair, what the invoice is missing, because the insurer is settling it less the excess, is the net cost of the windscreen

Windscreen	153.35
Vat	30.67
Total	184.02
Insurer contribution	78.35
Excess	75.00
Total Outstanding	105.67

Thank you. After receiving a message from Autoglass, this was the explanation. I suppose, as being vat registered, it is better for me. 

ontheroad1970

You are no better off, no worse off.  When you claim the VAT back, it will still have been £75 that you paid.  

Car_54

stulaunch said:

Sandtree said:

The 20% isnt on the £75 excess but on the total cost of the repair, what the invoice is missing, because the insurer is settling it less the excess, is the net cost of the windscreen

Windscreen	153.35
Vat	30.67
Total	184.02
Insurer contribution	78.35
Excess	75.00
Total Outstanding	105.67

Thank you. After receiving a message from Autoglass, this was the explanation. I suppose, as being vat registered, it is better for me. 

You're no better off for being registered. If you weren't, you wouldn't have been charged the £75.

Sandtree

Car_54 said:

stulaunch said:

Sandtree said:

The 20% isnt on the £75 excess but on the total cost of the repair, what the invoice is missing, because the insurer is settling it less the excess, is the net cost of the windscreen

Windscreen	153.35
Vat	30.67
Total	184.02
Insurer contribution	78.35
Excess	75.00
Total Outstanding	105.67

Thank you. After receiving a message from Autoglass, this was the explanation. I suppose, as being vat registered, it is better for me. 

You're no better off for being registered. If you weren't, you wouldn't have been charged the £75.

The excess would still have paid, its the £30.67 that wouldnt have been charged.

Thrugelmir said:

Insurance companies are unable to recover VAT so pass the liability to their customer. 

Because insurance is VAT exempt insurers typically cannot recover some of the VAT on their invoices but most insurers have secondary revenue streams that arent insurance premiums and so typically can recover some vat on their invoices... most the insurers I've worked with typically can recover 25% of their suppliers VAT charges.

Claims related invoices are slightly different, as they arent the beneficiary of the service they cannot recover any of the VAT, not even the c25% that they can from their monthly webhosting fees or stationary invoice etc. 

The OP is the beneficiary of the service (ie the new windscreen) the VAT is recoverable by them and hence the VAT is passed across and in theory the claims savings factored into the premiums.