Car breakdown in France Bluechip Warranty

[techie09]

 

I was traveling to France with my family and unfortunatly the car broke down, with a bit of luck it was just as we got to the hotel and was covered by Green Flag breakdown.It was found that the water pump failed and was leaking coolent, so was towed to the nearest local garage.

The total repair bill was 773 Euros + 20% VAT total cost 927.60 Euros. My question is can i claim back the VAT as the car was returned to the UK the next day ?

 

The car was also still in its 6 month warranty period with Bluechip Warranty, but they are only offering to pay £243.00 of the cost of repair, saying their T&C only cover cheaper car parts and just 3 hours labour, when the labour was 4.8 hours.

 

Any advice on the above would be much appreciated as at the present i would be nearly £600 out of pocket.

[dx100uk]

Is the car yours or on finance like hp?

 

Dx

[techie09]

Its mine, purchased from dealer paid in full, dealer included the 6 month Bluechip warranty with purchase, about 3 months left.

 

 

[dx100uk]

No warranty is ever worth the paper it is written on.

 

the item has failed within 6mts so under your consumer laws you could sue, but youd have to prove the fault was present at purchase, very diff for a water pump.

 

dont know about the vat sorry 

 

Dx

[techie09]

Yep, they seem to try and get away with paying bare minimum by all those T&C's, probably will just bite the bullet and take the £243. On the VAT side i will take a look at this

https://taxation-customs.ec.europa.eu/guide-vat-refund-visitors-eu_en

 

 but looks over complicated.

[Tony P]

VAT 'tax free' schemes only apply to goods, not Services.

 

Unlike goods that can be physically exported, services are provided in the country concerned and once provided are done.

VAT paid should be part of any claim you can make to the Warranty company or breakdown insurer.

[techie09]

Got it, so even though i have paid VAT on the car parts (goods) used for the repair, once they are fitted into the car as part of the service they no longer count as being physically exported into the UK. The warranty company are paying for a small percentage of the bill only as their T&C

 

 

[Tony P]

Generally, that's the principle. 

A supplier of goods does not have to charge VAT  if HE mails goods abroad (or to outside the EU, if he is in the EU).

VAT charged to you for services (not necessarily car servicing but 'doing something') is not reclaimable. 

 

Tax Free Personal Export Shopping schemes (now defunct in UK) can apply for goods personally exported by non-residents (or non-EU residents if purchased in EU) but this ceases to apply if the item is incorporated into something else - which it has been by being fitted to your car.

Also, the item would have to have been produced and verified by the EU customs at the point of departure from EU - which in this case has already happened.

 

Read the T&Cs closely. It might be that VAT is recoverable in full by the insurer (warranty company) as their Input Tax and therefore not part of the 'loss'  that has the limit. I believe that is how claims were often dealt with within UK by UK insurers.

Much as I would like it for you, I'm not hopeful.