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I have a bill from a garage for the VAT element of a repair. The cost of the repair was paid by the insurer How can I log this invoice as there is no actual net cost?

 
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Best answer March 12, 2020

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Highlighted
Level 1

I have a bill from a garage for the VAT element of a repair. The cost of the repair was paid by the insurer How can I log this invoice as there is no actual net cost?

Worked perfectly, thanks for your response @paul72 

View solution in original post

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Level 6

I have a bill from a garage for the VAT element of a repair. The cost of the repair was paid by the insurer How can I log this invoice as there is no actual net cost?

Hi @paul-easton 

 

Common practice with insurance claims.

Insurers will not pay the VAT element if the claimant is VAT registered.

 

Search for 100% VAT ... there are quite a few threads & a couple of different methods.

Personally, I enter as two lines:

(1)  Repair Cost = £100 with 20% VAT Code = £120

(2)  Paid by Insurer = --£100 with 0% VAT Code = --£100

 

Net result is £0 Cost but £20 VAT.

 

Hope this helps.

Highlighted
Level 1

I have a bill from a garage for the VAT element of a repair. The cost of the repair was paid by the insurer How can I log this invoice as there is no actual net cost?

Worked perfectly, thanks for your response @paul72 

View solution in original post