Comments on C-42/22: VAT liability of car parts sold by insurer

In this case the CJEU has ruled that the sale of car parts from written off motor vehicles, purchased from insured individuals, by the insurer cannot be VAT exempt. Whilst this is not binding on UK businesses, there are similar provisions in the UK. More generally, the UK also has complex VAT rules around insurance, and it is recommended to seek professional advice if there is any ambiguity regarding insurance related supplies.

Source Constable

See also ECJ C-42/22 (Global Companhia de Seguros) – Judgment – The concept of ‘insurance and reinsurance transactions’ does not includes related or supplementary activities as purchase and sale of parts from written-off vehicles

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