BGZ Leasing: single vs multiple supplies

The CJEU released its decision in BGŻ Leasing sp z.o.o v Dyrektor Skarbowej Warszawie (Case C-224/11) in January in this reference from the Polish courts concerning the VAT treatment of insurance when supplied alongside leased goods.

In summary the effect of the CJEU’s decision is that subject as always to the facts of a particular case where a lessor insures a leased item and recharges the cost of the insurance to the lessee there are likely to be two separate supplies for VAT purposes: a taxable supply of the asset; and an exempt supply of insurance.

The direct impact...