Motor claim - cash settlement

nicnac

Was rear ended the other day causing 1000 euro of damage. Planning to scrap my car in June so am reluctant to pump 1k into it.

Is it possible to take a cash settlement from insurance?

Thanks

Gumbo

nicnac wrote: »

Was rear ended the other day causing 1000 euro of damage. Planning to scrap my car in June so am reluctant to pump 1k into it.

Is it possible to take a cash settlement from insurance?

Thanks

Yes, the insurance company will remove the VAT before paying you though.

9935452

nicnac wrote: »

Was rear ended the other day causing 1000 euro of damage. Planning to scrap my car in June so am reluctant to pump 1k into it.

Is it possible to take a cash settlement from insurance?

Thanks

Id say talk to the insurance company.
How old is the car /what is it worth?

mickdw

Yes. If your car is damaged by that amount, you are entitled to a cash settlement to leave you in an identical position as before the accident.
They do stop the vat though as mentioned.

If however you had 1000 euro damage to a car only worth 500, you will only get the value of your car.

9935452

kceire wrote: »

Yes, the insurance company will remove the VAT before paying you though.

They might not. i was rearended, car was written off. Car was worth 2 grand. the letter said , car was worth 2 grand incl vat. They issued a check for 2 grand

To Elland Back

9935452 wrote: »

They might not. i was rearended, car was written off. Car was worth 2 grand. the letter said , car was worth 2 grand incl vat. They issued a check for 2 grand

That's different to repairing a vehicle

nicnac

Car is worth 2.5k. I plan buying a new car soon, so going for the scrappage option

goz83

To Elland Back wrote: »

That's different to repairing a vehicle

Are you saying, that if a car work 5k is rear ended, causing damage of €200 (including vat), quoted from a legitimate crash repair shop, that the insurer will pay out less than €200?

Keep in mind that the idea is to leave the owner of the damaged property in the same financial position as before the accident.

9935452

goz83 wrote: »

Are you saying, that if a car work 5k is rear ended, causing damage of €200 (including vat), quoted from a legitimate crash repair shop, that the insurer will pay out less than €200?

Keep in mind that the idea is to leave the owner of the damaged property in the same financial position as before the accident.

thats what some insurance companys are doing.
Saying the payout is including the vat and then holding the vat back.
Personally i wouldnt accept it, A solicitors letter and the threat of a personal injury claim would sort them out

Gumbo

goz83 wrote: »

Are you saying, that if a car work 5k is rear ended, causing damage of €200 (including vat), quoted from a legitimate crash repair shop, that the insurer will pay out less than €200?

Keep in mind that the idea is to leave the owner of the damaged property in the same financial position as before the accident.

That's what happens. The paying insurance company can claim the VAT back through its own books, so they offer you 2 options :

1. get the car repaired and provide them with a receipt or the repairers payment details and they pay them or

2. cash settlement minus the VAT.

Have them 2 options in front of me right now for a fender bender in January in one of my cars.

To Elland Back

goz83 wrote: »

Are you saying, that if a car work 5k is rear ended, causing damage of €200 (including vat), quoted from a legitimate crash repair shop, that the insurer will pay out less than €200?

Keep in mind that the idea is to leave the owner of the damaged property in the same financial position as before the accident.

If you want it fixed, they will pay the VAT, if you want cash you will get the net. The repairer is including VAT for his services, so no work, no VAT

To Elland Back

kceire wrote: »

That's what happens. The paying insurance company can claim the VAT back through its own books, so they offer you 2 options :.

There is no VAT on insurance premiums, so insurers cannot claim back VAT on claims

CiniO

What are the grounds under which insurers refuse to pay out Vat in case of cash settlement?
If damage is worth 1000 euro to repair (inclusive of vat) so why would they be allowed to pay less?
And what vat rate applies (13.5%)?

Gumbo

To Elland Back wrote: »

There is no VAT on insurance premiums, so insurers cannot claim back VAT on claims

Nothing to do with the premium. It's to do with the service being supplied by the garage fixing your car. Your insurance company is paying for this and thus can work with the VAT figures.

goz83

I for one, would not be standing for such BS. If the damage is worth x amount, I will not be accepting x less VAT. It is my decision, as to to whether I rectify the damage with the comensation, or not. The pay out is not for repair, it is for the loss incurred from their customers negligence. I am hearing more and more of this lately and it looks like another sly trick from insurers. It wouldn't work on me and if they tried, they would soon be regretting it. It's the same as paying for a written off car. If I decide to, I can use the cheque to light my fire if I so please, because I am under no obligation to replace my car, so I decide what I spend the money on and they can't pay out, less the vat.

Last year, my car was written off. I already had another car I was able to use, so I spent the money on other things, including medical bills from the accident. It was a sum, with no mention of vat, to my memory.

Anyone accepting this rubbish from an insurance company, is a push over imo.

roverrules

Surely if the cost or repair is €800 + vat, you would only be entitled to be paid the €800 unless you were vat registered.

challengemaster

roverrules wrote: »

Surely if the cost or repair is €800 + vat, you would only be entitled to be paid the €800 unless you were vat registered.

If the cost of the repair is €800 + vat then it means €800 is not a sufficient amount to fix the car, is it?

SuperS54

kceire wrote: »

Yes, the insurance company will remove the VAT before paying you though.

Please provide some back up to this statement, do you have a link to terms and conditions? My parked vehicle was damaged to the tune of EU2000, the guys insurance issued a check for the full amount of the quote which included VAT.

Spook_ie

roverrules wrote: »

Surely if the cost or repair is €800 + vat, you would only be entitled to be paid the €800 unless you were vat registered.

challengemaster wrote: »

If the cost of the repair is €800 + vat then it means €800 is not a sufficient amount to fix the car, is it?

Assume the cost of a repair is say €800 + VAT @13% €104

Then as the VAT is a tax it would have to be remitted to revenue, unless you are VAT registered you can't do this therefore the insurance company are correct to retain the VAT portion until such time as you get the car repaired ( I Think! )

vandriver

roverrules wrote: »

Surely if the cost or repair is €800 + vat, you would only be entitled to be paid the €800 unless you were vat registered.

No,your understanding is 100% wrong.
If I am vat registered,I get an invoice of the garage for €800+vat.I pay the garage the €908,and reclaim €108 from Revenue.I then get a cheque for €800 off the insurance company,and I am completely sorted.
If I am not vat registered,then I have no mechanism for reclaiming vat.

To Elland Back

kceire wrote: »

Nothing to do with the premium. It's to do with the service being supplied by the garage fixing your car. Your insurance company is paying for this and thus can work with the VAT figures.

Insurance Companies are VAT exempt, they cannot claim it back

To Elland Back

challengemaster wrote: »

If the cost of the repair is €800 + vat then it means €800 is not a sufficient amount to fix the car, is it?

So get it repaired then

bmwguy

I am an accountant, this makes perfect sense for the insurance company to do. The cost of the repair is 800, they pay you 800 cash if you don't want it repaired. In the event of getting it repaired, they pay the VAT too, as this is a legal requirement for the mechanic to charge. You have very little to be giving out about. If I was cynical, which thank God I am not, I might think you have an arrangement for someone to fix the car for 800 cash and you get to keep the extra VAT pay out. But thankfully, as I said, I am not a cynic

Valetta

bmwguy wrote: »

I am an accountant, this makes perfect sense for the insurance company to do. The cost of the repair is 800, they pay you 800 cash if you don't want it repaired. In the event of getting it repaired, they pay the VAT too, as this is a legal requirement for the mechanic to charge. You have very little to be giving out about. If I was cynical, which thank God I am not, I might think you have an arrangement for someone to fix the car for 800 cash and you get to keep the extra VAT pay out. But thankfully, as I said, I am not a cynic

This is correct.

The actual cost is €800.

If the insurance were to pay the claimant €904 (€800 + VAT), then the claimant would have €104 belonging to the general taxpayer, and would be obliged to hand it back.

EDIT: It's only where the claimant is VAT registered that the VAT is withheld by the insurance company.
If repairs are being carried out, they will insist that the garage invoice the claimant so they (the insured) can reclaim the VAT element of the repair.

vandriver

Valetta wrote: »

This is correct.

The actual cost is €800.

If the insurance were to pay the claimant €904 (€800 + VAT), then the claimant would have €104 belonging to the general taxpayer, and would be obliged to hand it back.

So,if you lost jewellery and decided not to replace it,you would accept under 800 for a grands worth of a claim?

Alucan

The insurance company will pay the cost of repair. If you are not vat registered they will pay you the full amount including the vat as you can not claim vat back this is what it will cost you to get repaired on the other hand if you are vat registered they will only pat the net amount as you can claim the vat back yourself. Insurance companies cannot claim vat back on repairs themselves

Valetta

vandriver wrote: »

So,if you lost jewellery and decided not to replace it,you would accept under 800 for a grands worth of a claim?

Apologies.... the below is correct.

It's still early in the morning

Alucan wrote: »

The insurance company will pay the cost of repair. If you are not vat registered they will pay you the full amount including the vat as you can not claim vat back this is what it will cost you to get repaired on the other hand if you are vat registered they will only pat the net amount as you can claim the vat back yourself. Insurance companies cannot claim vat back on repairs themselves

goz83

challengemaster wrote: »

If the cost of the repair is €800 + vat then it means €800 is not a sufficient amount to fix the car, is it?

Exactly. And the claimant is not obliged to have the repairs carried out. They are only seeking to recover the loss for the devaluation of their properly.

To Elland Back wrote: »

So get it repaired then

You really don't know what you're talking about. You're really only guessing. I have had two cars written off through the careless driving of others since 2011. On both occasions, I was paid out the sum, including the vat and less the scrappage cost, as I had decided to keep the vehicles on both occasions. Had a repair cost...lets say €200 for lets say some minor bumper repair (i wasn't that lucky) and I decided not to repair the bumper, there is still €200 of a loss to my property, which I would expect to fully recover. If I sold the car in damaged condition, in all likelihood, I would be seeing €200 less in the sale. The insurer should just be thankful I am not charging them for car rental while my damaged property is getting repaired.

bmwguy wrote: »

I am an accountant, this makes perfect sense for the insurance company to do. The cost of the repair is 800, they pay you 800 cash if you don't want it repaired. In the event of getting it repaired, they pay the VAT too, as this is a legal requirement for the mechanic to charge. You have very little to be giving out about. If I was cynical, which thank God I am not, I might think you have an arrangement for someone to fix the car for 800 cash and you get to keep the extra VAT pay out. But thankfully, as I said, I am not a cynic

You may be an accountant, but it really doesn't make sense, unless you mean that the insurers are simply trying to hoodwink people out of a portion of their legally entitled settlement. The reason why people find this stuff confusing, is because they think of it as car repair, or replacement, rather than the proper way of thinking "compensation for loss". As I said above, there is no obligation to use the compensation to repair, or replace a vehicle. And so what if the claimant decides to get a cheaper, back alley repair. The quote was for professional repairs, including vat and that is what should be paid out, unless there is fiddling with the quotes. The claimant may also be unsure if he/she wants to have the repair done. So, lets say they accept €800 and then decide a month later to go with the repair....should they be out of pocket because they waited? The idea that it is ok for the insurer to keep the vat is ludicrous and has not been something I have had to deal with.

Alucan wrote: »

The insurance company will pay the cost of repair. If you are not vat registered they will pay you the full amount including the vat as you can not claim vat back this is what it will cost you to get repaired on the other hand if you are vat registered they will only pat the net amount as you can claim the vat back yourself. Insurance companies cannot claim vat back on repairs themselves

Being VAT registered means feck all if your private property is damaged. VAT only comes into play for business related expenses and sales. If a vat registered person had his private vehicle damaged and the insurer paid the net amount for repair, the claimant could not claim the vat. All this, is an aside though, because the insurer has to pay out the amount, including vat. The claimant decides whether they are getting the vehicle repaired, replaced, or if they are going to use the money to buy an expensive bottle of wine.....the choice is theirs and vat doesn't, or at least shouldn't be coming into the picture.

To Elland Back

goz83 wrote: »

You really don't know what you're talking about. You're really only guessing. I have had two cars written off through the careless driving of others since 2011. On both occasions, I was paid out the sum, including the vat and less the scrappage cost, as I had decided to keep the vehicles on both occasions..

The basis of this thread is repairs and a write off is a different thing. Let me explain the claims procedure for you.

Firstly, insurers don't repair vehicles. They reimburse you for your costs in having your vehicle fixed. Even if payment is made directly to a repairer, they are effectively repaying you for the bill you have incurred.

If your invoice includes VAT and you are not VAT registered, they will pay the full amount. If you do not repair your vehicle, you have not incurred VAT, so insurers will not give you this element

If you are VAT registered, your insurer will compensate you for what it costs you to get your vehicle repaired. As you are entitled to offset the VAT element in your usual VAT declaration, you will not be paid this portion

Like it or dislike it, but that's the system

Gumbo

SuperS54 wrote: »

Please provide some back up to this statement, do you have a link to terms and conditions? My parked vehicle was damaged to the tune of EU2000, the guys insurance issued a check for the full amount of the quote which included VAT.

Why yes sir, that's no problem at all. Here's a letter from the other parties company to me last week.



I was told by the garage preparing the quote that if j wanted the cash the insurance company will minus the VAT, so common practice by them he said.

goz83

To Elland Back wrote: »

The basis of this thread is repairs and a write off is a different thing. Let me explain the claims procedure for you.

Firstly, insurers don't repair vehicles. They reimburse you for your costs in having your vehicle fixed. Even if payment is made directly to a repairer, they are effectively repaying you for the bill you have incurred.

If your invoice includes VAT and you are not VAT registered, they will pay the full amount. If you do not repair your vehicle, you have not incurred VAT, so insurers will not give you this element

If you are VAT registered, your insurer will compensate you for what it costs you to get your vehicle repaired. As you are entitled to offset the VAT element in your usual VAT declaration, you will not be paid this portion

Like it or dislike it, but that's the system

1k of damage to a car that might be wirth 2.5k is a category C, or D write off, so the basis isn't necessarily repair, although the thread took that direction.

I can't say I have personal experience with choosing not to repair damage caused by a third party, but my view is still that the loss includes vat and the insurance company is being quite sneaky here, choosing to offer cash, ex vat.

To Elland Back

goz83 wrote: »

1k of damage to a car that might be wirth 2.5k is a category C, or D write off, so the basis isn't necessarily repair, although the thread took that direction.

I can't say I have personal experience with choosing not to repair damage caused by a third party, but my view is still that the loss includes vat and the insurance company is being quite sneaky here, choosing to offer cash, ex vat.

If it is a Cat C or Cat D write off, you will get the value of the vehicle. If your vehicle can be repaired you will be paid what it has cost you to get it repaired. Wanting cash, including VAT that you have not been charged by anyone, is not an entitlement under your contract

Nothing sneaky about it

goz83

To Elland Back wrote: »

If it is a Cat C or Cat D write off, you will get the value of the vehicle. If your vehicle can be repaired you will be paid what it has cost you to get it repaired. Wanting cash, including VAT that you have not been charged by anyone, is not an entitlement under your contract

Nothing sneaky about it

Why would my contract matter if I was claiming off the other parties insurance?

And it is sneaky. €200 worth of damage today is still €200 worth of damage in a month, or a year and is €200 of a material loss, which will reflect in the sale price. Telling the buyer that I didn't get paid the vat isn't going to hold any water. If i try adding the lost vat. So, if I was given less than €200, I have not been compensated to the measure of my loss, which is the requirement and point of compensation.

If my vehicle is written off, they don't force me to buy another before they pay the value of the vehicle, so why should I be forced to have repairs carried out when they want, or at all?

To Elland Back

goz83 wrote: »

Why would my contract matter if I was claiming off the other parties insurance?

And it is sneaky. €200 worth of damage today is still €200 worth of damage in a month, or a year and is €200 of a material loss, which will reflect in the sale price. Telling the buyer that I didn't get paid the vat isn't going to hold any water. If i try adding the lost vat. So, if I was given less than €200, I have not been compensated to the measure of my loss, which is the requirement and point of compensation.

If my vehicle is written off, they don't force me to buy another before they pay the value of the vehicle, so why should I be forced to have repairs carried out when they want, or at all?

If the 3rd party has caused the accident, claim against him for depreciation. But you are not entitled to the VAT element on repairs if you don't incur VAT. I can't make it any simpler.

challengemaster

To Elland Back wrote: »

If the 3rd party has caused the accident, claim against him for depreciation. But you are not entitled to the VAT element on repairs if you don't incur VAT. I can't make it any simpler.

That doesn't make any sense though. If the cost to repair the damage is €1000 inc. VAT, then you are unable to repair the vehicle for the sum ex. VAT. If the company pays you the sum ex. VAT, you are at monetary loss.

That also can't be made any simpler.

To Elland Back

challengemaster wrote: »

That doesn't make any sense though. If the cost to repair the damage is €1000 inc. VAT, then you are unable to repair the vehicle for the sum ex. VAT. If the company pays you the sum ex. VAT, you are at monetary loss.

That also can't be made any simpler.

Read the whole thread. Get the car repaired and you get the full amount. If you want cash and not repair the car, no VAT is paid

challengemaster

To Elland Back wrote: »

Read the whole thread. Get the car repaired and you get the full amount. If you want cash and not repair the car, no VAT is paid

That doesn't matter though. It's irrelevant. Either way the damage caused is the cost to repair including VAT. If the company pays you anything less, whether you repair the vehicle or not, you are at monetary loss.

To Elland Back

challengemaster wrote: »

That doesn't matter though. It's irrelevant. Either way the damage caused is the cost to repair including VAT. If the company pays you anything less, whether you repair the vehicle or not, you are at monetary loss.

Not if you get your car fixed, which is your insurers only obligation to you. If you claim under your own policy, you have no right to depreciation as a result of the accident.

If you successfully claim against a TP, go for the depreciation aspect.

thadg

tell them you have bruises from the seat belt and have photos and your neck is sore and you don't know what you are doing yet.

they will give you the vat then.

insurance companies are a nightmare, I had trouble getting depreciation damage allowance to a 10k repair on a car worth 21k at the time and they said they would only give me 1k, in reality my car dropped 2k in value.

I wouldn't have claimed anyway as I wouldn't be into that crack unless I had to, but when I mentioned the marks and photos all was sorted and got my 2k as I deserved

be firm with insurance companies as they are ruthless and bully you into decisions on the spot

mik_da_man

What I don't understand fully from this is how a claim payout from the insurance company could be a valid 'purchase' for VAT classification.. Insofar as they can subtract the VAT from a cash payout.. The claim amount should be the same regardless..

To Elland Back

thadg wrote: »

I wouldn't have claimed anyway as I wouldn't be into that crack unless I had to, but when I mentioned the marks and photos all was sorted and got my 2k as I deserved

That's depreciation and fair play for sticking to your guns

goz83

To Elland Back wrote: »

Not if you get your car fixed, which is your insurers only obligation to you. If you claim under your own policy, you have no right to depreciation as a result of the accident.

If you successfully claim against a TP, go for the depreciation aspect.

You're back tracking now, the thread was not about own policy claims. It is about claiming the loss caused by a third party, from their policy. I think we all understand what you are trying to say, with regards to pay-outs, but I am of the opinion that your opinion is incorrect, even if this is happening on a daily basis. When an insurer pays out to a third party claimant (or any claimant really), they should be paying out the full loss. Anything less is not full compensation. the full payment is not contingent on the repair being carried out, so the vat should not be contingent on the repair being carried out. A loss has occurred, by repair, or by sale, or even by keeping the vehicle as is, there is a loss. Full compensation should be seen for the loss.

Now, if the same loss was being claimed from my own policy and the insurer had some kind of repair vat clause, I would be of the view, that unfair terms have been inserted into the motor policy. I might not bother to challenge it, if the sum was small, but if it was significant, I would. Unfair terms get beaten down all the time with the threat of legal action.

To Elland Back

Not back tracking at all. I'll leave it at this

Own policy claim with no repair = Cash settlement paid net of VAT, no entitlement to depreciation
Claiming against a 3rd party with no repair = Cash settlement paid net of VAT but you can claim depreciation.

goz83

To Elland Back wrote: »

Not back tracking at all. I'll leave it at this

Own policy claim with no repair = Cash settlement paid net of VAT, no entitlement to depreciation
Claiming against a 3rd party with no repair = Cash settlement paid net of VAT but you can claim depreciation.

You were back tracking. You started going on about own policy claims and depreciation, which were not the basis of the threads op.

What you are saying seems to be happening, as shown by a poster abover, but it does not equal full compensation for the loss and so the insurer is not meeting their obligations and are leaving themselves open to further damages.

If a claimant is getting ripped off, they are far more likely to throw in an injury claim on top. Insurers are well known to offer a quick settlement to make these things go away. If they treat claimants properly, there will be less messing going on. Of course, there will always be shady people looking to make a quick few quid from an accident with false claims, but imo, taking cash in lieu of repairs, does not fall into that category and the full loss should be paid to cover the what it would cost for a comprehensive repair. End of.

To Elland Back

What is the big deal with wanting cash. If a 3rd party is at fault, the insurer will repair you car to your satisfaction at a garage of your choice. Add in depreciation and you are compensated. Nobody is getting ripped off and there is nothing shady about it. Wanting cash rather than repairs encourages inflated estimates, but that is not the reason they exclude VAT, it is because you have not incurred VAT by not having your vehicle repaired.

I don't think we can agree on this, so we should leave it there

goz83

To Elland Back wrote: »

What is the big deal with wanting cash. If a 3rd party is at fault, the insurer will repair you car to your satisfaction at a garage of your choice. Add in depreciation and you are compensated. Nobody is getting ripped off and there is nothing shady about it. Wanting cash rather than repairs encourages inflated estimates, but that is not the reason they exclude VAT, it is because you have not incurred VAT by not having your vehicle repaired.

I don't think we can agree on this, so we should leave it there

Not everyone will want the repairs carried out, but don't want to be at a loss either. The OP doesn't want to pump 1k of repairs into his car, so he shouldn't have to be at a loss for not wanting the repairs carried out.

The very mention of insurance repairs inflates estimates, so let's not go there. The reason the insurers exclude vat, is to save a few bob when they can...no other reason.

Alucan

If the cost of the repair is 800 plus vat the 800 is for the repair and the vat element is owed to the revenue if you choose not to repair there is no vat element owed to the revenue so why would the insurance company pay it to you. I would advise you to contact you're broker or insurance company for clarification as there seems to be general lack of understanding about it here

goz83

Alucan wrote: »

If the cost of the repair is 800 plus vat the 800 is for the repair and the vat element is owed to the revenue if you choose not to repair there is no vat element owed to the revenue so why would the insurance company pay it to you. I would advise you to contact you're broker or insurance company for clarification as there seems to be general lack of understanding about it here

The ex vat cost of repair may be 800, but the monetary loss, resulting from the claimants damage, is inclusive of vat. The claimant might decide to repair the car after their summer holiday and use the cash from the insurance company on their holiday. The repair is still going to cost 800 plus vat if they get it repaired professionally, a couple of months later. The repair is not a requirement of the claimant. The compensation of the full cost of repair (the monetary loss) is the thing that needs to be considered. Anything less and the claimant is being short changed.

I agree, some people can't seem to grasp this simple fact and muddy the waters with words like "depreciation".

mickdw

goz83 wrote: »

The ex vat cost of repair may be 800, but the monetary loss, resulting from the claimants damage, is inclusive of vat. The claimant might decide to repair the car after their summer holiday and use the cash from the insurance company on their holiday. The repair is still going to cost 800 plus vat if they get it repaired professionally, a couple of months later. The repair is not a requirement of the claimant. The compensation of the full cost of repair (the monetary loss) is the thing that needs to be considered. Anything less and the claimant is being short changed.

I agree, some people can't seem to grasp this simple fact and muddy the waters with words like "depreciation".

Is it possible to operate as a legit garage and not be vat registered? I know it's possible to have a small turnover business and be fully legit without vat registration.
If this is possible in the motor trade, then it would make perfect sense that the insurer would exclude the vat from cash payout. If however vat registration is compulsory for motor traders, that would then mean that there is no way the car could be legitimately repaired without incurring the vat so they should pay.

goz83

mickdw wrote: »

Is it possible to operate as a legit garage and not be vat registered? I know it's possible to have a small turnover business and be fully legit without vat registration.
If this is possible in the motor trade, then it would make perfect sense that the insurer would exclude the vat from cash payout. If however vat registration is compulsory for motor traders, that would then mean that there is no way the car could be legitimately repaired without incurring the vat so they should pay.

I don't know if it's compulsory, but it would only take a handful of repairs to exceed the threshhold of €37500. The threshhold doesn't take expenses into account. If 37500 is expected to pass through your fingers in a year, then you must register for vat. So, vat registration would seem to be the norm, unless you're talking about an off the grid, non tax compliant type, doing repairs in his front garden.

Its worth mentioning that any parts needed will have attracted vat. Including paint.

mickdw

goz83 wrote: »

I don't know if it's compulsory, but it would only take a handful of repairs to exceed the threshhold of €37500. The threshhold doesn't take expenses into account. If 37500 is expected to pass through your fingers in a year, then you must register for vat. So, vat registration would seem to be the norm, unless you're talking about an off the grid, non tax compliant type, doing repairs in his front garden.

No. I specifically mentioned legit. I have a small business that stays under the vat threshold. I think the threshold is also higher where goods are provided.
I think my point is quite relevant, if it's possible to have the car fixed in a tax compliant garage without incurring vat, then they should not pay out the vat without knowing that a vat registered garage will be doing the work.