COURT OF JUSTICE OF THE EU / (ae) taxation

Mechanical breakdown insurance for second-hand vehicles is VAT-exempt

Brussels, 20/07/2015 (Agence Europe) - The activity of providing insurance cover for mechanical breakdowns which may affect certain parts on second-hand vehicles is an insurance operation exempt from value-added tax (VAT), the Court of Justice of the EU stated in a judgment returned on Thursday 16 July.

Mapfre warranty, an Italian insurance company operating in France under the name NSA Sage, provides fixed-term insurance cover in the event of any breakdowns in second-hand vehicles. This...