- The VAT exemption for insurance services does not extend to foreign claims settlement services, as determined by the Tax and Customs Administration, which argues these services are VAT-taxed.
- The Supreme Court ruled that two services cannot be treated as a single VAT service if they stem from different legal relationships involving separate entrepreneurs, prompting further examination by the District Court of Noord-Nederland regarding whether foreign claims settlement services qualify for VAT exemption.
- The court found that foreign claims representatives do not qualify as insurance intermediaries under VAT law, as they do not engage in client acquisition or act on behalf of insurers, and ruled that the FE’s foreign subsidiaries do not constitute permanent establishments for VAT purposes due to insufficient evidence of resource control.
Source Taxlive
