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Where Taxpayers and Advisers Meet

AppleCare VAT (insurance)

SH88
Posts:10
Joined:Tue Apr 03, 2018 9:40 am
AppleCare VAT (insurance)

Postby SH88 » Wed Sep 08, 2021 4:31 pm

Hello.
I apologise in advance for this question (I'm new at all this).

Is AppleCare+ (which is Insurance on a Laptop) classed as an expense?
Furthermore, can the VAT on the purchase for AppleCare+ be claimed back in a VAT Return?

It seems Apple doesn't distribute Receipts for these transactions, but rather a "Proof of Cover" document that omits any cost involved.

Thanks in advance.

pawncob
Posts:4749
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: AppleCare VAT (insurance)

Postby pawncob » Thu Sep 09, 2021 8:09 pm

Yes.
There's no VAT on insurance.
With a pinch of salt take what I say, but don't exceed your RDA

robbob
Posts:3149
Joined:Wed Aug 06, 2008 4:01 pm

Re: AppleCare VAT (insurance)

Postby robbob » Fri Sep 10, 2021 9:19 am

For any warranty type expenses i am always somewhat dubious as to what vat rate will be charged - ANY buisness you deal with must supply vat invoice or detail vat being billed upon request.

Note pawncob is right that normally there is no vat on insurance - but similar arrangements may have a service element that could make them vatable and some non exempt institutions may have to charge vat on such services anway - so really as with any expenense you need to ask for vat invoice or DEMAND supplier confirm vat
and take it from there.

SH88
Posts:10
Joined:Tue Apr 03, 2018 9:40 am

Re: AppleCare VAT (insurance)

Postby SH88 » Fri Sep 10, 2021 12:31 pm

Yes.
There's no VAT on insurance.
For any warranty type expenses i am always somewhat dubious as to what vat rate will be charged - ANY buisness you deal with must supply vat invoice or detail vat being billed upon request.

Note pawncob is right that normally there is no vat on insurance - but similar arrangements may have a service element that could make them vatable and some non exempt institutions may have to charge vat on such services anway - so really as with any expenense you need to ask for vat invoice or DEMAND supplier confirm vat
and take it from there.
Thanks for both your comments. I appreciate your time.
Apple finally sent me a VAT receipt (I had to phone up and be put through to several departments just to get a transaction receipt emailed for some reason).
I can confirm they invoice with £0 VAT.

Thanks for confirming I can include this as an expense.
Enjoy your day.

robbob
Posts:3149
Joined:Wed Aug 06, 2008 4:01 pm

Re: AppleCare VAT (insurance)

Postby robbob » Fri Sep 10, 2021 1:56 pm

Thanks for both your comments. I appreciate your time.
Apple finally sent me a VAT receipt (I had to phone up and be put through to several departments just to get a transaction receipt emailed for some reason).
I can confirm they invoice with £0 VAT.

can you advise if the invoice says the services are exempt - or whether the invoice says "subject to te reverse charge" - there may be implications for you on the vat return if the serices are supplied under "revserse charge rules" - reverse charge is only likely to be an issue if the invoice is not from apple uk - eg apple republic of ireland. If its apple uk it must be exempt as pawncob initially indicated.

SH88
Posts:10
Joined:Tue Apr 03, 2018 9:40 am

Re: AppleCare VAT (insurance)

Postby SH88 » Sat Sep 11, 2021 8:43 am

can you advise if the invoice says the services are exempt - or whether the invoice says "subject to te reverse charge" - there may be implications for you on the vat return if the serices are supplied under "revserse charge rules" - reverse charge is only likely to be an issue if the invoice is not from apple uk - eg apple republic of ireland. If its apple uk it must be exempt as pawncob initially indicated.
If I'm reading the invoice correctly, it's exempt, which I believe means nothing can be claimed back, because no VAT was paid.
Please see attached screenshot (not sure how to link images in this forum):

https://i.imgur.com/s2Bx5lk.png

robbob
Posts:3149
Joined:Wed Aug 06, 2008 4:01 pm

Re: AppleCare VAT (insurance)

Postby robbob » Sat Sep 11, 2021 9:58 am

Thats perfect exempt it is - no vat to reclaimand no "reverse charge" hassles


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