Court of Justice of the European Union

Judgment of 17 March 2016, published on 2 May 2016

Case C-40/15

In the Judgment in question, rendered in the framework of a request for preliminary ruling, the Court of Justice of the European Union stated that claims settlement services, i.e., activities aimed at determining liability, the amount of damage and the decision to pay compensation to the insured person, provided by a third party for and on behalf of an insurance company, do not constitute “services related to insurance transactions” and thus are not exempt from VAT.

According to the Court of Justice of the European Union, for a provision of services to be considered “related to insurance transactions” two requirements must be met: (i) the provider has a relationship with both the insurer and the insured party; and, (ii) the provision of services covers essential aspects of the work of an insurance agent, such as the finding of prospective clients and their introduction to the insu rance company.