Opinion of the Advocate General — ECLI:EU:C:2000:507
Date: 2000-09-26
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Taxation;Value added tax
Procedure: Reference for a preliminary ruling
Origin: Sweden

Summary of the Judgment 
Tax provisions — Harmonisation of laws — Turnover taxes — Common system of 
value added tax — Exemptions provided for by the Sixth Directive — Exemption for 
insurance and reinsurance transactions — Definition — Carrying out by an insurance 
company of the business activity of another insurance company in return for remuneration 
at mariiet rates but without assuming the related liabilities — Excluded 
(Council Directive 77/388, Arts 2(1) and 13B(a)) 
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SUMMARY — CASE C-240/99 
A commitment assumed by an insurance 
company to carry out, in return for remu­
neration at market rates, the business 
activities of another insurance company, 
which is its 100% subsidiary and which 
would continue to conclude insurance con­
tracts in its own name, does not constitute 
an insurance transaction, within the mean­
ing of Article 13B(a) of the Sixth Directive 
on the harmonisation of the laws of the 
Member States relating to turnover taxes, 
that is exempt from value added tax. Such 
an activity, remunerated at market rates, 
constitutes a service effected for considera­
tion within the meaning of Article 2(1) of 
the Sixth Directive, and is accordingly 
subject to value added tax. 
(see paras 43-44 and operative part) 
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