Page 115 - P6 Slide Taxation - Lecture Day 5 - VAT Part 1
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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)
