The ECJ has held that the effect of art 135(1)(a) is that a member state cannot restrict the scope of the exemption for insurance transactions exclusively to supplies by insurers who are authorised by national law to pursue the activity of an insurer1. Consequently, and with effect from 1 January 2005, the UK legislation dealing with exemption in relation to insurance was amended to remove any reference to the authorisation of insurers. Exemption now applies simply to 'Insurance transactions and reinsurance transactions'2.
Place of supply
A supply of insurance may only be exempt for UK VAT purposes if the place of that supply is in the UK. Where the place of supply is outside the UK, the supply will be outside the scope of UK VAT. The establishing of the place of supply is important, since the right (if any) to recover related input tax is dependent on it3.
The place of supply of insurance services is set out in the tables below.
The
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 17 Mar 2025 14:19