Insurance (VAT Notice 701/36) – definition of insurance updated

The Court of Justice of the European Union, in the case of United Biscuits (Pension Trustees) Ltd & Anor v R & C Commrs (Case C235-19) [2020], upheld the definition given in the case of Card Protection Plan Ltd v C & E Commrs (Case C-349/96) [1999] which concluded that:

…the essentials of an insurance transaction are… that the insurer undertakes, in return for prior payment of a premium, to provide the insured, in the event of materialisation of the risk covered, with the service agreed when the contract was concluded.

Source KPMG

See also Roadtrip through ECJ Cases – Focus on ”Exemption – Insurance and reinsurance transactions, including related services performed by insurance brokers and insurance agents (Art. 135(1)(a))

 

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