- VAT-Exempt Insurance Transaction: The Court of Appeal ruled that a company pension fund’s performance of a defined benefit agreement qualifies as a VAT-exempt insurance transaction, as the fund bears the risk and maintains a legal relationship with the participants.
- Dispute Over VAT Deduction: The Tax and Customs Administration denied the pension fund’s VAT deduction on general costs, arguing that the services provided are exempt under Article 11(1)k of the VAT Act, while the fund contended it only acted as an administrator without taking on risk.
- Court’s Affirmation of Exemption: The Court upheld the exemption, citing established EU case law that confirms the essential elements of insurance—premium payment, risk, and benefit—are satisfied, and emphasized the adequate legal relationship between the fund and participants through employment contracts.
Source BTWjurisprudentie
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