Insurers fear tax rule could send jobs to India

I've read this article linked from the house price crash website:

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14522005 but it doesn't say what is actually changing. Surely insurance companies are VAT registered so they can claim back any VAT paid to their suppliers? What am I missing here?

Reply to
Fred
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Insurance is an exempt supply so VAT charged by suppliers cannot be recovered.

Reply to
Peter Saxton

No. Insurance companies are not VAT registered, because insurance is not a taxable supply. It is subject to insurance premium tax rather than VAT.

Even if they are VAT registered by virtue of making other taxable supplies, they wouldn't be able to claim VAT on any expenses relating to insurance.

Reply to
Jonathan Bryce

"Jonathan Bryce" wrote

... unless their insurance business is *very* small !!

Reply to
Tim

Thanks for the replies. If you "import" services I suppose they are not subject to duty and VAT.

Reply to
Fred

They are subject to VAT if it is a EU country and you are not VAT registered.

Reply to
Peter Saxton

Yes I am aware of that, I was thinking of the importation of services from outside the EU. Just that if you import goods, they generally are VATable even if you're tax exempt supplier.

Reply to
Fred

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