Company A arranges business insurance for Company B and Company C, both unrelated.
Would Company A need to recharge B and C the premiums at the standard rate of VAT?
Many thanks
Replies (3)
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Company A may benefit from the exemption for an insurance intermediary. It depends on precisely what the company did to bring the other parties together to enter the contract of insurance.
You say A *arranges* insurance for B and C. Why can't B and C *pay* for the insurance themselves?
Is the insurance that is recharged part of some wider arrangement such as service charges on property?
If A has arranged and paid for the insurance, are B and C actually party to the insurance contract? If not, they may not be able to claim should the need arise.