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A query was raised regarding whether the insured party or the insurance company should bear the VAT on the repair of a damaged vehicle. The DGT ruled that this depends on whether the compensation system is based on a cash indemnity or direct repair of the object.
This clarification provides legal certainty for insurers and policyholders regarding VAT liability in claims processing, distinguishing between cash settlements and direct repair services.
The tax team reviews your specific situation.
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