The CJEU rules that claims handling services supplied by Aspiro are not exempt under article 135(1)(a) of the VAT Directive, say Kevin Carletti & Richard Louden of KPMG.
The CJEU has followed the opinion of the advocate general and concluded that Aspiro’s comprehensive claims handling service is neither VAT exempt as the provision of insurance nor VAT exempt as the provision of an insurance related service by an insurance broker or agent. The supply was not insurance as there is no assumption of risk by Aspiro in return for a premium and Aspiro has no direct contract with the insured. The insurance exemption is more tightly drawn than the finance exemptions and does not exempt related services merely because they form a distinct whole and are essential for and specific to the exempt insurance service.
Although claims handling is an insurance related service insurance related services are only exempt...
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Aspiro and claims handling supplies
The CJEU rules that claims handling services supplied by Aspiro are not exempt under article 135(1)(a) of the VAT Directive, say Kevin Carletti & Richard Louden of KPMG.
The CJEU has followed the opinion of the advocate general and concluded that Aspiro’s comprehensive claims handling service is neither VAT exempt as the provision of insurance nor VAT exempt as the provision of an insurance related service by an insurance broker or agent. The supply was not insurance as there is no assumption of risk by Aspiro in return for a premium and Aspiro has no direct contract with the insured. The insurance exemption is more tightly drawn than the finance exemptions and does not exempt related services merely because they form a distinct whole and are essential for and specific to the exempt insurance service.
Although claims handling is an insurance related service insurance related services are only exempt...
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