Analysis: “CJEU rules that the VAT exemption for insurance services does not apply to investment fund management services not providing any indemnity for risk” by Jordi Sol

On 8 October 2020, the Court of Justice of the European Union (CJEU) ruled in United Biscuits (Pensions Trustees) and United Biscuits Pension Investments (C-235/19) that investment fund management services supplied for an occupational pension scheme, which do not provide any indemnity from risk, cannot be classified as ‘insurance transactions’ and, thus, are not covered by the VAT exemption provided in Article 135(1)(a) Directive 2006/112.

In the argumentation of the CJEU it is worth highlighting the following:

First, for the VAT exemption to apply it is necessary that the insurer undertakes, in return for prior payment of a premium, to provide the insured (who has previously paid a premium), in the event of materialisation