Lee Squires and Fiona Bantock review recent VAT developments that matter, including the CJEU decision in BGZ Leasing.
Insurance on leased items: BGZ Leasing The CJEU has given judgment in BGZ Leasing (C-224/11). BGZ Leasing a company supplying goods on operating leases required its leased items to be insured. Although BGZ offered to provide insurance its customers were also free to secure insurance from unconnected third parties. Non-payment of insurance supplied by BGZ could result in termination of the lease. The referring court asked the CJEU to consider whether the supply of leasing services and the supply of insurance for the leased item constituted a single supply for VAT purposes and if not whether the insurance element was VAT exempt where the lessor re-invoiced the cost of insurance to the lessee.
The CJEU held that the insurance was an aim in itself for the lessee on...
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Lee Squires and Fiona Bantock review recent VAT developments that matter, including the CJEU decision in BGZ Leasing.
Insurance on leased items: BGZ Leasing The CJEU has given judgment in BGZ Leasing (C-224/11). BGZ Leasing a company supplying goods on operating leases required its leased items to be insured. Although BGZ offered to provide insurance its customers were also free to secure insurance from unconnected third parties. Non-payment of insurance supplied by BGZ could result in termination of the lease. The referring court asked the CJEU to consider whether the supply of leasing services and the supply of insurance for the leased item constituted a single supply for VAT purposes and if not whether the insurance element was VAT exempt where the lessor re-invoiced the cost of insurance to the lessee.
The CJEU held that the insurance was an aim in itself for the lessee on...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
