German-law context: This page relates to German law and German automotive claims practice. It provides operational information, not individual legal advice.
Mark the settlement route early, keep net and gross positions separate and avoid mixing a hypothetical repair calculation with the workshop’s actual repair order.
Notional settlement
The claim is based on calculated necessary repair costs rather than an actual invoice. VAT and referral issues require case-specific legal assessment.
Actual repair
The repair business performs the work and documents the real operations, supplements, invoices and payment flow. The invoice must be technically and commercially auditable.
Change of route
Cases can move from a notional starting point to an actual repair. The record should show when and why the route changed and which documents now govern.
Workshop communication
Do not treat a notional settlement as a lost order by default. Record the customer decision, explain operational options and maintain role separation from legal advice.
Frequently asked questions
Is VAT always included in notional settlement?
No. VAT treatment depends on whether and to what extent it is actually incurred.
Can the customer later repair?
Potentially yes, subject to the case and legal framework. The transition should be documented.
What should the workshop avoid?
Promising a legal settlement result or mixing calculated and actual positions.
Why is route marking useful?
It prevents invoice, VAT and customer-expectation errors.
Frank Roll, MSc, MBA
Automotive claims management specialist working at the interface between dealerships, insurers, automotive damage assessors and legal professionals since 1998. Author of Schadenmanagement im Autohaus and developer of the R-SOS management consulting system.
Last reviewed: July 2026 · The specialist book is currently available in German.