Complex supply – Ski rental associated with insurance and transport services

A company performing as its principal activity the rental of ski equipment and the sale of sports goods in stores operated under different brands has been audited and the FTA issued tax reassessments relating to the insurance and transport services pro-vided in addition to the main leasing activity, pursuant to article 267, I-2° of the FTC.

Based on the well-established line of reasoning deriving from CJEU case law, the Court rejected this analysis. It notably pointed out that these two services are optional and may be provided by other operators. Insofar as they are not essential to the equipment leasing main activity, they become an end in themselves for the customers. The mere fact that such services are not offered apart from the equipment leasing is not sufficient to establish that they would objectively form a single economic operation. The Court upheld the company’s position which had not applied VAT on the insurance benefit and had applied the VAT reduced rate to the passenger transport services.

Although this decision appears favourable to the taxpayer, it should be noted that it does not detail the practical conditions for the implementation of these insurance and passenger transport services related to the equipment leasing. Up to date, no appeal to the Conseil d’Etat has been filed.

Michel Guichard

Michel Guichard, as a Partner, was responsible for the Indirect Tax (VAT Customs) practice and then for the Tax Litigation practice dedicated to assisting clients in national and EU litigation. […]

Bertrand Jeannin

Bertrand Jeannin, Partner, supplies strategic and technical advice to French and foreign multinational groups in all aspects of their VAT and customs policies. He regularly assists his clients in the […]

Nicolas Kazandjian

Barrister registered with the Hauts-de-Seine Bar, he started my career in the indirect tax service line of Deloitte Société d’Avocats in 1999. My current position is Director. My area of […]

Vanessa Irigoyen

With more than 16 years of experience, Vanessa has extensive expertise in the implementation of international efficiency business models for customs, export control and indirect tax purposes. Her functions notably […]

Anne Gerometta

Anne Gerometta is Indirect Tax Partner of Deloitte Société d’Avocats. She advises international groups on their indirect tax issues. Anne notably assists operators from the Financial Sector – bank, insurance […]

Delphine Nicault

Delphine Nicault is an Attorney-at-Law at the French Bar. She joined Deloitte in 2002 and assists her clients on day-to-day VAT issues. She developed an expertise in the VAT and […]