VATupdate

ECJ C-907/19 (Q-GmbH) – Judgment – Intermediation activities for an insurance company are not VAT exempted

On March 25, 2021, the ECJ issued the Judgment in the case C-907/19 (Q-GmbH). The case deals with the question whether intermediation activities for an insurance company VAT exempt.

A German referral asking, where a taxable person who carries out intermediary work for an insurance company and also provides that insurance company with the mediated insurance product, does a service related to insurance and reinsurance transactions qualify for exemption pursuant to Article 135(1)(a) of the VAT Directive?


Reference to the EU VAT Directive

135(1)(a) of the EU VAT Directive 2006/112/EU

Article 135 (Exemption)
1. Member States shall exempt the following transactions:
(a) insurance and reinsurance transactions, including related services performed by insurance brokers and insurance agents;


Facts

A German referral asking, where a taxable person who carries out intermediary work for an insurance company and also provides that insurance company with the mediated insurance product, does a service related to insurance and reinsurance transactions qualify for exemption pursuant to Article 135(1)(a) of the VAT Directive?


Questions

Is there an ancillary service, which is supplied exempt from VAT by insurance brokers and insurance intermediaries, where a taxable person who carries out intermediation activities for an insurance company also makes the underlying insurance product available to that insurance company?


AG Opinion

None


Decision

Art. 135 (1) (a) of Council Directive 2006/112 / EC of November 28, 2006 on the common system of value added tax is to be interpreted as meaning that the exemption from value added tax provided for in the provision of services provided by a taxable person an insurance product to an insurance company and, as an ancillary service, the brokerage of this product for the account of this company and the administration of the insurance contracts concluded does not apply, provided that the referring court classifies these services as a single service with regard to VAT.


Source Curia


Reference to this case in the EU Member States


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