Roadtrip through ECJ Cases – Focus on ”Exemption for Credit guarantees” (Art. 135(1)(c))

Article in EU VAT Directive

Article 135(1)(c)

Article 135
1. Member States shall exempt the following transactions:
(c) the negotiation of or any dealings in credit guarantees or any other security for money and the management of credit guarantees by the person who is granting the credit;

ECJ Cases Decided

• C-455/05 (Velvet & Steel Immobilien) – No exemption Credit Guarantees for obligations which are non-pecuniary, such as the obligation to renovate a property
• C-425/06 (Part Service) – Composite Supplies – Abuse of rights in case leasing contracts are split
• C-242/08 (Swiss Re Germany Holding) – An assignment for consideration of a portfolio of life reinsurance contracts is not exempted from VAT
• C-695/19 (Rádio Popular) – Exempt Insurance commissions to be included in the turnover to calculate the denominator for proportional VAT deduction

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