RCB/13/13 VAT—loss adjusting services supplied in connection with marine and aviation insurance claims – incorrect application of the zero-rate
Revenue & Customs Brief, Issue 13. 2 July 2013
Purpose of this Brief
This Brief confirms the VAT treatment of loss adjusting services supplied in connection with marine and aviation insurance claims and explains what action to take if you have failed to account for VAT in respect of such services in the past.
We are issuing this Brief because it appears that many businesses have been incorrectly treating such services as zero-rated surveys for VAT purposes.
Who needs to read this?
Businesses that supply loss adjusting services in connection with marine or aviation insurance claims.
Insurers that receive such loss adjusting services (including insurers that receive such services from abroad).
Insurance brokers or agents acting in the marine and aviation insurance industry.
Action to take
Businesses that supply the relevant loss adjusting services should ensure that they account for VAT at the standard rate where the services are treated as supplied in the UK in accordance with the place of supply rules, and should review their retrospective VAT treatment in accordance with this Brief.
Insurers that receive these services from abroad should ensure that they account for standard rated VAT under the “reverse charge”and should also review their retrospective VAT treatment in accordance with this Brief.
Place of supply and the reverse charge are explained in Notice 741A “Place of supply of services” (Part V8).
The VAT Act 1994, Schedule 8, Group 8 provides that the zero-rate of VAT applies to certain