Bad debt relief is not available to third party insurers, even if all rights inherent to that debt are transferred to them.
An insurance company was compensating policyholders with respect to unpaid debts. The compensation paid by the insurance company to one policy holder included most of the debt amount plus the corresponding output VAT. The insurance company thought to recover this VAT under the bad debt relief rules, from the relevant authorities, which denied it, arguing that the insurance company could not claim bad debt relief with respect to a transaction that it had not carried out. The CJEU confirmed that position stressing out that the taxable person carrying out the transaction did receive consideration for their supply, therefore that the debt could not be considered as unpaid.
Source: dlapiper.com
Latest Posts in "European Union"
- Agenda of the ECJ/General Court VAT cases – C-603/24 (Stellantis) judgment on May 13, 2026
- New ECJ VAT Case: C-413/26 (Prodalco Mat) – No details known yet
- EPPO 2025 Annual Report: Key Customs Enforcement Trends, Fraud Schemes, and Cross-Border Actions
- EU Agrees to Give Anti-Fraud Bodies Wider, Direct Access to VAT Data to Combat Cross-Border Fraud
- EU Adopts New Data Sharing Rules to Combat Billion-Euro Cross-Border VAT Fraud
