On December 7, 2006, the ECJ issued its decision in the case C-13/06 (Commission vs. Greece).
Context: Failure of a Member State to fulfil obligations – Sixth VAT Directive – Exemptions – Article 13B(a) – Insurance transactions – Body providing road assistance services
Article in the EU VAT Directive
Article 13B(a) of the Sixth VAT Directive (Article 135(1)(a) of the EU VAT Directive 2006/112/EC)
Without prejudice to other Community provisions, Member States shall exempt the following under conditions which they shall lay down for the purpose of ensuring the correct and straightforward application of the exemptions and of preventing any possible evasion, avoidance or abuse:
(a) insurance and reinsurance transactions, including related services performed by insurance brokers and insurance agents
Facts
Having noted that, pursuant to the said Article 15(42), car accident or breakdown services supplied by ELPA (Automobile & Touring Club of Greece) to its members in return for the payment of a fixed annual subscription gave rise to the levy of VAT on that subscription, and considering that such transactions should benefit from the exemption provided for under Article 13B(a) of the Sixth Directive, the Commission sent a letter of formal notice, on 7 July 2004, to the Hellenic Republic.
Questions
AG Opinion
None
Decision
1. Declares that, by levying value added tax on services consisting in road assistance in the event of a breakdown, the Hellenic Republic has failed to fulfil its obligations under Article 13B(a) of the Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonisation of the laws of the Member States relating to turnover taxes – Common system of value added tax: uniform basis of assessment;
2. Orders the Hellenic Republic to pay the costs.
Summary
Acts relating to insurance – Organization providing assistance in the event of a car breakdown
By charging VAT on services consisting of assistance in the event of a breakdown, Greece has failed to fulfill its obligations under Article 13B(a) of the Sixth Directive.
Source:
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