The European Court of Justice (ECJ) has issued a preliminary ruling, which was published in the European Union Official Gazette. This ruling, related to Case No. C-42/22, provides clarification on the Portuguese VAT regime concerning insurance companies.
The case involved an insurance company that purchased parts from damaged motor vehicles involved in accidents with their insured clients. These parts were then resold to third parties without paying VAT on the sales. The Portuguese Tax Authorities argued that VAT should be applicable to these transactions.
The ECJ has made the following determinations:
This ruling provides important guidance on the application of VAT regulations for insurance companies in Portugal.
Source: europa.eu