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Edited version of your written advice
Authorisation Number: 1012662777928
Ruling
Subject: GST and services provided in relation to motor vehicle insurance claims
Question 1
Is the insurance settlement received by an entity from an insurer which is paid in respect of the customer's claim (as the 'not at fault' driver) against the 'at fault' driver a consideration for a taxable supply?
Answer
No, the insurance settlement received by the entity from an insurer which is paid in respect of the customer's claim (as 'not at fault' driver) against the 'at fault' driver is not a consideration for a taxable supply.
Question 2
Does the entity make a creditable acquisition in respect of the repair services supplied by repairers under the arrangement? If so, is the entity's input tax credit based on the amounts stated on the repairer's tax invoices to the entity?
Answer
The entity would be making a creditable acquisition in respect of the repair services supplied by the repairers under the arrangement provided the acquisition from the repairer satisfies all of the requirements under section 11-5 of the GST Act. The input tax credit is based on the tax invoices issued by the relevant suppliers.
Question 3
Does the entity make a creditable acquisition in respect of the replacement vehicle supplied by the supplier under the arrangement? If so, is the entity's input tax credit based on the amounts stated on the supplier's tax invoices to the entity?
Answer
The entity would be making a creditable acquisition in respect of the replacement vehicle supplied by the supplier under the arrangement provided the acquisition from the supplier satisfies all of the requirements under section 11-5 of the GST Act. The input tax credit is based on the tax invoices issued by the relevant suppliers.
Question 4
Does the entity make a creditable acquisition in respect of the assessment services supplied by the assessors? If so, is the entity's input tax credit based on the amounts stated on assessor's tax invoices to the entity?
Answer
The entity would be making a creditable acquisition in respect of the assessment services supplied by the assessors provided the acquisition from the assessors satisfies all of the requirements under section 11-5 of the GST Act. The input tax credit is based on the tax invoices issued by the relevant assessors.
Question 5
Does the entity make a taxable supply to the recipients for the services supplied under the arrangement? If so, is the entity's liability on the amounts stated on the entity's tax invoices to the repairers?
Answer
Yes, the entity does make a taxable supply to the recipients for the services supplied under the arrangement. The entity is liable to remit GST on the taxable amount of the supplies made to the recipients.
Question 6
Does the entity make any taxable supply to the customer?
Answer
No, the entity does not make taxable supplies to the customer in relation to the services provided to the customer under the terms and conditions of the contract.