- Insurance transactions are exempt from VAT to avoid double taxation with insurance tax.
- A court case highlighted the tension between VAT and insurance tax for a tenant association providing legal advice to members.
- The association allocated membership fees to different areas, claiming VAT exemption for insurance services.
- The tax office disagreed, leading to a legal challenge.
- The court ruled in favor of the association, recognizing the legal advice as an insurance service exempt from VAT.
- The ruling suggests that if a service is not subject to insurance tax but is subject to VAT, the association might claim a partial VAT deduction.
- There may be an exemption from insurance tax for associations providing legal protection to members.
Source: umsatz-steuer-beratung.de
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
