jewels asked this question 7 years ago:

Use of Vat form

Today I had my windshield replaced by a local German "car glass" company. I have AIG insurance and gave the claim number to the glass shop where they instructed me that when I came to pick up the car be prepared to pay my 250 euro deductible and to bring a VAT form. When I got there, it was explained to me that my cost was the 250 euro and that I had to supply my own VAT form because the insurance company would not pay the taxes. I explained that the VAT form was my property to be used for purchases that I make and not for the purpose of giving AIG the tax relief. The glass shop told me that if I did not use the VAT form that I would have to pay the 250 deductible AND the taxes on the full price of the windshield. I walked out after using my VAT form (in order to get my car back without paying the taxes) and I personally did not get tax relief on even the 250 deductible that I paid out of pocket! I can only assume that AIG is making out like a bandit on this. Any thoughts on this?



7 years ago

Quote by jewels:
Today I had my windshield replaced by a local German "car glass" company. I have AIG insurance and gave the claim number to the glass shop where they instructed me that when I came to pick up the car be prepared to pay my 250 euro deductible and to bring a VAT form. When I got there, it was explained to me that my cost was the 250 euro and that I had to supply my own VAT form because the insurance company would not pay the taxes. I explained that the VAT form was my property to be used for purchases that I make and not for the purpose of giving AIG the tax relief. The glass shop told me that if I did not use the VAT form that I would have to pay the 250 deductible AND the taxes on the full price of the windshield. I walked out after using my VAT form (in order to get my car back without paying the taxes) and I personally did not get tax relief on even the 250 deductible that I paid out of pocket! I can only assume that AIG is making out like a bandit on this. Any thoughts on this?


I would give a call to the VAT office to see what they have to say about this. Something certainly sounds fishy by your account of what happened.

Here is the info you will need to contact them.
http://www.everythingkmc.com/showthread.php?t=12321

Let us know what happens, please.

7 years ago

Oh I will!

7 years ago

Quote by jewels:
Today I had my windshield replaced by a local German "car glass" company. I have AIG insurance and gave the claim number to the glass shop where they instructed me that when I came to pick up the car be prepared to pay my 250 euro deductible and to bring a VAT form. When I got there, it was explained to me that my cost was the 250 euro and that I had to supply my own VAT form because the insurance company would not pay the taxes. I explained that the VAT form was my property to be used for purchases that I make and not for the purpose of giving AIG the tax relief. The glass shop told me that if I did not use the VAT form that I would have to pay the 250 deductible AND the taxes on the full price of the windshield. I walked out after using my VAT form (in order to get my car back without paying the taxes) and I personally did not get tax relief on even the 250 deductible that I paid out of pocket! I can only assume that AIG is making out like a bandit on this. Any thoughts on this?


That's not right....also my glass deductible with AIG is 150 Euro.

7 years ago

I had to have a chip repaired on my windshield. It was about 20€ if I recall. That was my deductible, and the glass company (ABC) billed the insurance on my behalf.

7 years ago

Quote by JOFTAA:
I had to have a chip repaired on my windshield. It was about 20€ if I recall. That was my deductible, and the glass company (ABC) billed the insurance on my behalf.


Strange....that's usually free because you are doing the ins company a favor.

7 years ago

Quote by Bergman:
Strange....that's usually free because you are doing the ins company a favor.


I think it was 20€ because they came to me, rather than me going to them.

7 years ago

I emailed the VAT office and this was their reply.

The Car Glass was correct. The Insurance company does require a VAT form because the parts that are going on your vehicle are TAX free. I understand that this sounds strange, but we have check with IMCOM on this policy and they have confirmed that Insurance company can require VAT forms for Americans do to all parts being provided is being place on the American vehicle and the parts are tax free.

This only goes for your vehicle. If they were paying out on an accident from a German vehicle that would not require the VAT. IF you still have a VAT form dated prior to the work and the work was under 2500.00 net than you should provide them with a VAT form otherwise taxes will be included on the cost. Please note that if the cost was over 2500.00 NET than the Taxes will have to be paid do to that the work has already been completed.

I hope this helps.

I don't buy this. The bill was 720 euro and of that I paid 250 euro (of which I got NO tax relief on) and I am sure that there was a charge for labor included in that amount as well. What gives!?!?

7 years ago

Can you scan and post a copy of your invoice? Just edit out your personal info. If the VAT office says it is correct, I doubt you have any recourse, but it can't hurt to have the invoice looked at to see if the VAT office is wrong. It would not be the first time someone was given misinformation.

7 years ago

No way! AIG is required to pay tax regardless of the car. They are bringing it back to its original condition.

7 years ago

USAA asks members to supply the vat for under 2500 repairs also. Over 2500 they have a system set up to cover taxes but it still includes leg work to the vat office.
3 hours ago via mobile · Like

We were told the same thing with Atlantic and the VAT office told us we had to use the form to save the insurance company money that its somehow in the contract that lowered the premiums to begin with
about an hour ago · Like

7 years ago

Very strange. Never ever had to use a VAT form for repairs. I'll ask aboun this from a friend of mine who sells AIG and other insurances.

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