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VAT and Insurance : The European Union

Papis-Almansa, Marta LU (2017) In VAT and Financial Services p.337-364
Abstract
In European VAT, insurance is exempt from the tax. Determination of the scope of exemption for ‘insurance and reinsurance transactions, including related services performed by insurance brokers and insurance agents’ is far for being clear in the light of the wording, purpose and context of Article 135(1)(a) of the VAT Directive. The Court of Justice has clarified the concepts enacted in that provision to a large extent in its case law. Nevertheless, the approach of the Court, which has to balance the principle of neutrality on one hand, and the principle of strict interpretation of exemptions on the other, still leaves many interpretative doubts. The definition of insurance as formulated by the Court of Justice focuses on the nature of the... (More)
In European VAT, insurance is exempt from the tax. Determination of the scope of exemption for ‘insurance and reinsurance transactions, including related services performed by insurance brokers and insurance agents’ is far for being clear in the light of the wording, purpose and context of Article 135(1)(a) of the VAT Directive. The Court of Justice has clarified the concepts enacted in that provision to a large extent in its case law. Nevertheless, the approach of the Court, which has to balance the principle of neutrality on one hand, and the principle of strict interpretation of exemptions on the other, still leaves many interpretative doubts. The definition of insurance as formulated by the Court of Justice focuses on the nature of the service and raises questions as to the scope of its application to services which, although not constituting conventional insurance, share the functions and characteristics of such insurance. The case law of the Court of Justice as to the outsourcing of services by insurers and transfers of portfolios of (re)insurance has had a severe impact on how insurers can structure and restructure their businesses. In this chapter, after a brief presentation of the background for the current state of law, the case law of the Court of Justice as to the scope of the exemption for insurance in European VAT is analysed and critically assessed. (Less)
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author
organization
publishing date
type
Chapter in Book/Report/Conference proceeding
publication status
published
subject
keywords
tax law, European tax law, European VAT, exemptions, insurance
in
VAT and Financial Services
editor
Krever, Richard ; van Brederode, Robert F.; and
pages
28 pages
publisher
Springer
ISBN
978-981-10-3463-3
DOI
10.1007/978-981-10-3465-7
language
English
LU publication?
yes
id
f6c8652d-68c4-4e9e-91bc-a63897c0db5d
date added to LUP
2017-08-16 11:40:24
date last changed
2017-08-17 09:25:12
@inbook{f6c8652d-68c4-4e9e-91bc-a63897c0db5d,
  abstract     = {In European VAT, insurance is exempt from the tax. Determination of the scope of exemption for ‘insurance and reinsurance transactions, including related services performed by insurance brokers and insurance agents’ is far for being clear in the light of the wording, purpose and context of Article 135(1)(a) of the VAT Directive. The Court of Justice has clarified the concepts enacted in that provision to a large extent in its case law. Nevertheless, the approach of the Court, which has to balance the principle of neutrality on one hand, and the principle of strict interpretation of exemptions on the other, still leaves many interpretative doubts. The definition of insurance as formulated by the Court of Justice focuses on the nature of the service and raises questions as to the scope of its application to services which, although not constituting conventional insurance, share the functions and characteristics of such insurance. The case law of the Court of Justice as to the outsourcing of services by insurers and transfers of portfolios of (re)insurance has had a severe impact on how insurers can structure and restructure their businesses. In this chapter, after a brief presentation of the background for the current state of law, the case law of the Court of Justice as to the scope of the exemption for insurance in European VAT is analysed and critically assessed. },
  author       = {Papis-Almansa, Marta},
  editor       = {Krever, Richard  and van Brederode, Robert F.},
  isbn         = {978-981-10-3463-3},
  keyword      = {tax law,European tax law,European VAT,exemptions,insurance},
  language     = {eng},
  pages        = {337--364},
  publisher    = {Springer},
  series       = {VAT and Financial Services},
  title        = {VAT and Insurance : The European Union},
  url          = {http://dx.doi.org/10.1007/978-981-10-3465-7},
  year         = {2017},
}