Why am I asked to pay for VAT on damage or an insurance claim compensation?

When you go through a claim, you might be asked if you are VAT registered. The normal position is that if the business/owner is VAT registered, the cost of repairs is paid net of VAT. You can then claim the VAT element back from HMRC through your next VAT return if you are a VAT registered business.

Unfortunately Camplify or the insurance company cannot cover the cost of VAT as this is a tax claimed back by you the owner.