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Invoicing an Insurance Intermediary (VAT Issue)

  • 13-01-2015 3:48pm
    #1
    Coldplayer
    Registered Users, Registered Users 2 Posts: 120 ✭✭


    When invoicing an insurance intermediary you have to look ultimately at their client to establish whether you have to charge VAT.

    Have a situation where we have invoiced an insurance company inclusive of VAT, as their client is chargeable, they paid the invoice minus the VAT and say we need to follow up with the insured.

    Is this correct? and if so do you have to issue a separate VAT invoice?


Comments

  • #2
    viztopia
    Closed Accounts Posts: 770 ✭✭✭viztopia


    Coldplayer wrote: »
    When invoicing an insurance intermediary you have to look ultimately at their client to establish whether you have to charge VAT.

    Have a situation where we have invoiced an insurance company inclusive of VAT, as their client is chargeable, they paid the invoice minus the VAT and say we need to follow up with the insured.

    Is this correct? and if so do you have to issue a separate VAT invoice?

    Can you explain the nature of the transaction? I.e. what were you invoicing for etc. I would go back to the insurance company and ask them to quote the relevant vat legislation as to why they are not paying the vat


  • #3
    Alan Shore
    Registered Users, Registered Users 2 Posts: 735 ✭✭✭Alan Shore


    Who did you do the work for?

    If the client is registered for VAT and entitled to reclaim the VAT then you invoice them, the insurance company will pay the net amount and the client will reclaim the VAT and pay you.

    The insurance company compensated the insured for the loss ie the cost less VAT.


  • #4
    Coldplayer
    Registered Users, Registered Users 2 Posts: 120 ✭✭Coldplayer


    Alan Shore wrote: »
    Who did you do the work for?

    If the client is registered for VAT and entitled to reclaim the VAT then you invoice them, the insurance company will pay the net amount and the client will reclaim the VAT and pay you.

    The insurance company compensated the insured for the loss ie the cost less VAT.

    It's a a professional services firm. The firm's client is the insurance company who is in turn acting for a third party. The third party is a vat registered company. Our invoice is addressed to the insurance company as they are our client. When raising the invoice we have to look at the status of the third when deciding whether to change VAT. My main issue I suppose is should the insurance company have just paid the total of the invoice or should we have addressed the invoice to the third party in the first instance?


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