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V1499-14 9 June 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · operaciones de seguro

Insurance premium passed on by a removal company to its customers is exempt from VAT

A removal company has enquired whether the premium for goods in transit insurance, charged to customers alongside transport services, is exempt from VAT. The DGT has ruled that such a premium constitutes an independent insurance operation and is therefore exempt.

The question raised

Exemption on the premium charged by the consultant to its clients along with the transport service.

The DGT's ruling

The services provided by the moving company to its clients are insurance operations, as they respond to an eventual event in exchange for a lump sum amount. This exemption is applicable even if the entity is not an insurer, provided that it acts within the framework of collective insurance. The premium must be considered a service independent of the transport service and is exempt from VAT.

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