Directeur general des finances publiques v Mapfre asistencia compania internacional de seguros y reaseguros SA (Fifth Chamber) [2015] EUECJ C-584/13 (16 July 2015)

Directeur general des finances publiques v Mapfre asistencia compania internacional de seguros y reaseguros SA (Fifth Chamber) [2015] EUECJ C-584/13 (16 July 2015)

A warranty service provided by an independent economic operator to purchasers of second-hand vehicles, covering mechanical breakdowns in return for a lump sum, constitutes an exempt insurance transaction under Article 13(B)(a) of the Sixth Directive, provided the essential elements of insurance are present. Such a warranty and the sale of the vehicle are, in principle, distinct and independent supplies for VAT purposes, unless the referring court finds them so interconnected as to constitute a single transaction.

Citation
[2015] EUECJ C-584/13
Parties
Appellant/respondent: Directeur général des finances publiques; Respondent/appellant: Mapfre asistencia compania internacional de seguros y reaseguros SA; Respondent/appellant: Mapfre warranty SpA
Jurisdiction
European Union
Judgment Date
16 July 2015
Procedural Posture
Preliminary Ruling (reference for Interpretation) / Judgment of the Court of Justice of the European Union (fifth Chamber) on Reference From Cour De Cassation, France
Outcome
Preliminary ruling issued; interpretation provided to national court.
Legal Topics
Value Added Tax (vat), Insurance Exemption, Interpretation of Sixth Directive 77/388/eec, Taxation of Insurance Contracts, Supply of Services
European Union Law Tax Law Value Added Tax (vat) Insurance Exemption Interpretation of Sixth Directive 77/388/eec Taxation of Insurance Contracts Supply of Services

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Parties

Directeur général des finances publiques

Appellant/respondent

Mapfre asistencia compania internacional de seguros y reaseguros SA

Respondent/appellant

Mapfre warranty SpA

Respondent/appellant

Procedural Posture

Preliminary Ruling (reference for Interpretation) / Judgment of the Court of Justice of the European Union (fifth Chamber) on Reference From Cour De Cassation, France

Legal Issues

  1. 1 Whether a warranty service provided by an independent operator covering mechanical breakdowns of second-hand vehicles constitutes an exempt insurance transaction under Article 13(B)(a) of the Sixth Directive
  2. 2 Whether such a warranty and the sale of the vehicle are distinct and independent supplies for VAT purposes

Ratio Decidendi

A warranty service provided by an independent economic operator to purchasers of second-hand vehicles, covering mechanical breakdowns in return for a lump sum, constitutes an exempt insurance transaction under Article 13(B)(a) of the Sixth Directive, provided the essential elements of insurance are present. Such a warranty and the sale of the vehicle are, in principle, distinct and independent supplies for VAT purposes, unless the referring court finds them so interconnected as to constitute a single transaction.

Court Disposition

Preliminary ruling issued; interpretation provided to national court.

Orders

  • Article 13(B)(a) of Sixth Directive 77/388/EEC must be interpreted as meaning that a warranty service covering mechanical breakdowns provided by an independent operator is an exempt insurance transaction, subject to determination by the referring court.
  • The warranty and the sale of the vehicle are, in principle, distinct and independent supplies for VAT purposes, unless found to be a single transaction by the referring court.