General Introduction and the Law: Law: EC Law
The Principal VAT Directive Article 135 1(a) provides exemption for:
insurance and reinsurance transactions, including related servicesperformed by insurance brokers and insurance agents;
EC law does not provide a definition of those persons who may exempt supplies ofinsurance. Nor does it define the nature of the supply that qualifies as insurance. Itallows exemption for related services when supplied by an insurance broker or agent.Article 135 1(a) does not define related services, though any such services must berelated to insurance or reinsurance transactions. Courts, however, often refer to ECregulatory legislation to assist with defining the services of an insurance agent,although it is important to note that regulatory law cannot be determinative of the VATtreatment see VATINS5110.