ECJ takes a look at the VAT exemption for development and brokerage of insurance products

German: Frage nach Umsatzsteuerfreiheit: EuGH nimmt Entwicklung und Vermittlung von Versicherungsprodukten in den Blick (Mittwoch, 25.03.2020)

Unofficial translation:

The Federal Fiscal Court (BFH) doubts whether an insurance broker who, in addition to his brokerage activities, also provides an insurance company with the insurance product he has brokered, provides services that are exempt from VAT. In order to clarify this question, the Federal judges have therefore now submitted a request for a preliminary ruling to the European Court of Justice (ECJ).

In the underlying case, an insurance broker had himself developed an insurance product with which ships and their crews could be insured against piracy in the Gulf of Aden. The intermediary granted a licence to an insurance company to use this insurance product. In addition, he assumed the brokerage of this insurance and other services in the execution of the insurance contracts (e.g. in the area of claims settlement).

The ECJ is now to clarify whether the single service (consisting of insurance brokerage, the granting of a licence and other services for the performance of the contract) can be made tax-exempt as a whole, although only one ancillary service – insurance brokerage – would be tax-exempt if considered individually.

Source: js-steuerberater.de

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