Page 9 - F6 Slide - VAT Part 4 - Lecture Day 5
P. 9
Indemnity Payments
What is reason for this deemed supply rule?
Insurance premiums paid under a short-term
insurance policy – vendor may claim input vat
when receive claim – has to account for output VAT
No input/output on long-term insurance
Financial service
= exempt
No deemed supply where payments:
• Are not related to taxable supplies
• If input tax on the goods were denied (e.g.motor car)
