Aspiro and claims handling supplies

The CJEU has followed the opinion of the advocate general and concluded that Aspiro’s comprehensive claims handling service is neither VAT exempt as the provision of insurance nor VAT exempt as the provision of an insurance related service by an insurance broker or agent. The supply was not insurance as there is no assumption of risk by Aspiro in return for a premium and Aspiro has no direct contract with the insured. The insurance exemption is more tightly drawn than the finance exemptions and does not exempt related services merely because they form a distinct whole and are essential for and specific to the exempt insurance service.

Although claims handling is an insurance related service insurance related services are only exempt if the supplier is an insurance broker or agent. As Aspiro had no involvement in finding prospects and introducing the insured to the insurer with a...