Can I deduct VAT when using my car for business purposes?
Car insurance is normally taken out on the basis of the car's catalogue value. When insuring a business car, you can deduct the VAT. The catalogue value is then reduced by the VAT. You can thus qualify for a lower premium on your car insurance.
Advantage on your premium
As soon as you are liable for VAT, the stated catalogue and/or daily value can be reduced by the VAT amount. The VAT part in a damage amount can be settled with the tax authorities and the insurer does not have to pay this part. Since the value of your car is a factor that determines the premium, in many cases the premium will be lower because you do not have to pay the premium over the VAT amount. This rule applies regardless of whether you have purchased the insurance including or excluding VAT.
VAT in the event of damage
If it has been established that you can offset the VAT, the insurer will always pay out the claim excluding VAT. This means that the VAT charged by a damage repair company for a repair must be paid by yourself. You can reclaim this VAT from the tax authorities.
Changing your car insurance
If you would like to change your car insurance to the insured value excluding VAT, please let us know by using the link in the e-mail you received from us. Are you having problems with this? Please contact us via +31 (0)88-6883712.
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