Client Alert
| February 18, 2010
Transfers of Insurance and Reinsurance Contracts – VAT and Transfer Duty Treatment
The French tax authorities have published, on 26 January 2010, an advance tax ruling concerning the regime applicable to transfers of insurance and reinsurance contracts for VAT purposes. This ruling occurred following the issues raised by the decision of the European Court of Justice (ECJ) dated 22 October 2009 (case 242/08 Swiss Ré) in which the Community judge had found that a transfer for consideration of a portfolio of life reinsurance contracts is not a transaction likely to be entitled to VAT exemption pursuant to article 135, 1-a of the VAT Directive (provisions transposed into article 261 C, 2° of the French General Tax Code - GTC). The ECJ had also disallowed the financial nature of such a transaction and had therefore excluded a possible VAT exemption on the basis of paragraphs c and d of article 135, 1 of the VAT Directive (transposed into paragraphs b and c of article 261 C, 1° of the GTC).
This memorandum is intended only as a general discussion of these issues. It is not considered to be legal advice. We would be pleased to provide additional details or advice about specific situations. For additional information on this important topic, please feel free to call upon your Dewey & LeBoeuf relationship partner. No part of this publication may be reproduced, in whole or in part, in any form, without our prior written consent.
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