Page 20 - P6 Slide Taxation - Lecture Day 3 - VAT Part 2
P. 20
Indemnity payments [s 8(8)]:
12.2.2. Value of supply [s 8(8)]
Value of the supply = 14/114 x Consideration receivedx % TS
12.2.3. Time of supply [s 8(8)]
= date that vendor receives payment / other person receives
payment
- If insurer replaced damaged/stolen goods (no cash is paid out;
no indemnity payment): No output VAT
- What will happen if insurance makes payment to a 3rd party?
Vendor indemnified must still charge output VAT
1 of the 3 exceptions: actual % TS
