VAT on Fictitious Billing & Replacement Purchases – Explained

by Archynetys Economy Desk

Hello everyone,

My car was damaged. The question of guilt is clear.

Now the report came and the situation looks like this (rounded example values ​​to make calculations easier):

Replacement value including VAT: 40,000.-

Repair costs including VAT: 25000,-

Residual value including VAT: 16000,-

Depreciation: 2000,-

Theoretically, there is a total economic loss: 25,000 + 16,000 = 41,000 and that is greater than 40,000 of the replacement value.

The appraiser says that the car can also be repaired without any problems.

If I decide to purchase a new one, I would have to ask the insurance company for a fictitious bill, right?

Then the insurance will only pay out the repair costs excluding VAT.

How do I get the VAT on the repair costs back if I buy a replacement car from the dealer?

And what are the deadlines for purchasing a replacement vehicle?

Thanks.

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