Page 116 - P6 Slide Taxation - Lecture Day 5 - VAT Part 1
P. 116
Deemed supply:
Indemnity payments
15/115
Value of supply x consideration received
x % that relates to taxable supplies
Time of supply date of receipt of that payment or the
date of payment to another person
• Insurer replaces damaged/stolen goods = NO output tax
consequences (no indemnity payment)
• Payment is made to a 3rd party to indemnify the vendor =
vendor has to pay output tax
