What about short term insurance on delivery vehicle and printer equipment?
ScanSolve AI Answer
Step-by-step solution
3 stepsOkay, let's look at short-term insurance for a delivery vehicle and printer equipment.
Understand the nature of short-term insurance.
Short-term insurance, like vehicle insurance or insurance for equipment, is generally considered a financial service.
Apply VAT rules for financial services.
In many VAT systems, including those in South Africa (which seems to be the context given your previous questions), financial services are specifically listed as exempt supplies. This means that the insurance company (even if they are VAT registered) does not charge VAT on the insurance premiums.
Determine the correct VAT category.
Since no VAT is charged on the insurance premium, you cannot claim any input VAT. The reason for this is that the supply itself is exempt from VAT, not because the supplier is not VAT registered.
Therefore, short-term insurance on delivery vehicles and printer equipment falls under the category of:
- Exempt supplies
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