An insurance company engaged in wholly exempt activities but VAT registered for ICAs acquires goods from a French company to the value of €5,000 for its own use in January 2020.
The insurance company accounts, in its VAT Return for VAT of €1,150 (5,000 @23%). The insurance company cannot claim any input credit. The insurance company must pay Revenue €1,150.
VAT 3 return for January and February 2020
| VAT return | Amount |
|---|
| T1 (VAT on sales) |
€1,150 |
| T2 (VAT on purchases) |
Nil |
| T3 (VAT payable) |
€1,150 |
| T4 (VAT repayable) |
Nil |
| E1 (value of goods sent to other EU countries) |
Nil |
| E2 (value of goods received from other EU countries) |
€5,000 |