Brokerage transactions in the sale of the extension of the guarantee included in the calculation of the pro-rata deduction of VAT

Judgment of 8 July 2021 of the Court of Justice in case C-695/19

 

The Court of Justice, with the recent sentence of 8 July 2021, made in case C-695/19, affirmed the principle according to which the intermediation operations in the sale of the extension of the guarantee, carried out by subjects who mainly carry out sales of goods, constitute services relating to insurance transactions carried out by insurance brokers and intermediaries (exempt pursuant to article 135, paragraph 1, letter a), of directive no. 112/2006 / EC (“Directive”) which are relevant for the purpose of calculating the pro-rata VAT deduction.

Source PwC

See also ECJ case C-695/19 (Rádio Popular) – Decision – Exempt Insurance commissions to be included in the turnover to calculate the denominator for proportional VAT deduction

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