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A repair workshop inquires whether its services are exempt from VAT when repairs are covered by insurance. The DGT responds that these services do not form part of the insurance operation and must be taxed.
Question posed: Exemption on the provision of services by the inquirer in the event that repairs are covered under the insurance guarantee.
The provision of vehicle repair services invoiced to insurance companies does not share the nature of insurance. Therefore, these operations are subject to VAT, with the workshop being the taxable person responsible for settling and charging the tax to the recipient.
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