A new twist in the VAT treatment of outsourcing in the financial sector. In a case brought by PwC before the District Court of the Northern Netherlands, preliminary questions were asked to the Supreme Court about the VAT treatment of claims settlement services purchased by an insurer. The Court asked the Supreme Court whether the outsourced claims settlement together with the insurer’s (VAT-exempt) insurance service constituted a single supply. As a result, the settlement of claims would also be exempt from VAT. Although the case concerns the settlement of claims in motor insurance, an affirmative answer in this case could also have far-reaching consequences for the VAT treatment of other forms of outsourcing in the financial sector.
Source PwC
See also
- C-40/15 (Aspiro) – Claims settlement services provided by a third party are not VAT Exempted
- 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))
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
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