- Taxpayer X is a part of a cross-border group and primarily provides services in the insurance sector.
- X believes that the VAT paid for foreign damage settlement services in the first quarter of 2019 was wrongly paid as it is not due.
- The dispute revolves around whether the damage settlement service provided by a foreign claims adjuster, in the case of damage abroad, together with the insurance service provided by the motor vehicle insurer to the policyholder, constitute a single transaction for VAT purposes.
- X argues that the foreign damage settlement services should be exempt from VAT as they are considered services related to insurance activities performed by insurance intermediaries.
- Alternatively, X argues that the damage settlement services are an integral part of the insurance services provided by X and should therefore be exempt from VAT.
- X also argues that it is not liable for reverse VAT on the damage settlement services purchased from its subsidiaries in France, Germany, and Belgium, as these subsidiaries should be considered fixed establishments of X for VAT purposes.
- X claims a refund of €134,489 based on its primary and subsidiary arguments, or €97,863 based on its more subsidiary argument.
- The tax authority disagrees with X’s arguments and believes that the VAT was correctly paid.
Source: uitspraken.rechtspraak.nl
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
