Aspiro case (C-40/15) - VAT exemption in the insurance business
MDDP represented the taxpayer before the Court of Justice of the European Union in the Aspiro case (C-40/15) regarding the possibility and scope of application of the VAT exemption to insurance loss adjustment services provided to insurance companies by third-party entities, and in a broad sense for all services supporting insurance activity.
The position of the Court determined the compliance of national regulations with the VAT Directive in this respect. The Court’s judgment explained whether and in what situations entities providing outsourcing services for insurers benefit from the exemption from VAT, and also what consequences result from combining insurance brokerage activities with loss adjustment services.
The final result of the case had a very large impact on the perception of outsourcing as an effective way to optimize business processes. Thus, the ruling in the case has a very large impact on the insurance industry and on the development directions of the business model in this industry in the coming years both in Poland and in Europe.
The case was handled by MDDPs’ VAT Practice managed by Tomasz Michalik.