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, Partner, leads the Indirect Tax activity. With more than 30 years’ experience in International and French Tax law, he advises his clients on indirect tax matters. Michel is […]

Odile Courjon

Odile Courjon, Partner, has developed a strong expertise in indirect tax issues (VAT, wage taxes, excise taxes, export control and customs) in France and overseas. She advises her clients in […]

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. Major focuses of Bertrand’s input involve the […]

William Stemmer

William Stemmer, Partner, has more than 15 years’ experience in Indirect Tax matters. William particularly specializes in the real estate and financial sectors. William is a lecturer at the University […]

Nicolas Kazandjian

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

Vanessa Irigoyen

Vanessa has joined Deloitte France in 2002 and she is the partner leading the French indirect Tax Practice. For more than 18 years, she advises multinational companies on their global […]

Anne Gerometta

Anne, Director, has been advising companies on indirect tax issues for more than 15 years. Anne has developed a specific expertise on the manufacturing sector (VAT, customs and Export Control) […]