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A repairer sought clarification on the applicable VAT rate when an invoice is issued to the insured party, but payment is made by the insurance company via reimbursement. The DGT ruled that the 10% rate may be applied if the actual recipient is the insured party or the homeowners' association, provided all legal requirements are met.
This ruling clarifies the application of reduced VAT rates in insurance-related repairs, ensuring that the identity of the service recipient determines the tax rate rather than the party making the payment.
The tax team reviews your specific situation.
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