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New use and enjoyment provision for insurers outside EU.
The supply of repair services carried out after a claim is made to an insurer or its agent located outside the EU is now covered by a new use and enjoyment provision.
From 1 October 2016 VAT will be due where the service is consumed and charged on goods repaired for people living in the UK. UK repairers will therefore have to charge VAT to insurers or their agents based outside the EU.
By way of background when a claim is made for damage to the insured’s goods the insured will normally be the recipient of the services.
However some contracts specify that the goods will be repaired by the insurance provider and in these cases the supply of the repair service is to the insurance provider.
Before October when one of the parties was outside the EU VAT was payable in...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
