In Directeur général des finances publiques v Mapfre asistencia compania internacional de seguros y reaseguros SA and Mapfre warranty SpA v Directeur général des finances publiques (C-584/13) (16 July 2015) the CJEU found that the supply of warranty for mechanical breakdown was an exempt supply of insurance.
Second hand motor vehicle dealers offered purchasers of those vehicles through the services of Mapfre warranty a warranty covering the repair of mechanical breakdowns. The issue was whether the services provided by Mapfre warranty constituted ‘exempt insurance transactions’.
The CJEU noted that the essentials of an insurance transaction are that ‘the insurer undertakes in return for prior payment of a premium to provide the insured party in the event of materialisation of the risk covered with the service agreed when the contract was concluded’. This could include the provision of insurance cover by a taxable person...
