Insurance intermediation services and VAT exemption

MDDP was leading a case on applying a VAT exemption for insurance intermediation services in car industry for a company that oversees insurance agents (car dealers) and negotiates insurance scope with insurance companies. Tax authorities in a ruling stated that our Client cannot apply the exemption, as has no direct contract with insured clients. The court (case III SA/Wa 866/23) overturned the ruling stated that activities and responsibilities of the Client are necessary to conclude insurance agreements. Within the preliminary acceptance from the Client, insurance are not concluded, so its activities should also be seen an insurance intermediation exempted from VAT.

This case is important, because tax authorities in Poland present a very strict and narrow interpretation on of an exemption for insurance intermediation services.