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An insurer has requested clarification on whether the sale of vehicles recovered following theft or robbery claims is subject to VAT and how this affects its pro rata calculation. The DGT has ruled that such sales are subject to the tax and must be included in the company's turnover.
Insurers must ensure that the sale of recovered assets is correctly accounted for in their VAT returns and included in the calculation of their turnover to determine the correct pro rata percentage.
The tax team reviews your specific situation.
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