StelaR

The other company is a 'sister company,' part of the same MNE. They are just paying their share of the insurance policy's cost; hence, I think this can be classified as a disbursement.

One of the UK-registered companies within a multinational enterprise (MNE) has concluded an insurance policy that covers all UK-registered entities within the group. The premium is paid by the company that signed the insurance contract, but the cost is subsequently distributed to the other companies. Will the cost recharged to the other UK entities be subject to VAT, given that the main supply of the business is zero-rated VAT? Which VAT rate should the invoicing entity apply in this case?