In Directeur Général des Finances Publiques v Mapfre Warranty SpA (C-584/13) (4 February 2015) the advocate general (AG) considered that the provision of car breakdown cover was an insurance service exempt from VAT.
Mapfre charged second-hand car dealers a fixed sum and agreed to meet the cost of repairing the vehicles if they broke down during a specified period. It treated the charges to the dealers as subject to VAT. The French tax authority viewed the supplies made by Mapfre as VAT exempt supplies of insurance.
The AG noted that the Sixth Directive does not define ‘insurance’; however it had been defined by the CJEU in particular in BGZ Leasing (C-224/11). That definition was sufficiently wide to cover services by a trader which is not an insurer but which provides cover to its clients under a collective insurance provided by an insurance company. Furthermore it was...
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