Court of Justice (First Chamber) 3 April 2008, C-124/07 (J.C.M. Beheer BV v Staatssecretaris van Financiën.)

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In Case C-124/07, the Court of Justice (First Chamber) addressed whether Article 13B(a) of the Sixth VAT Directive (77/388/EEC) exempts from VAT the services of an insurance sub-agent who performs the characteristic activities of an insurance broker or agent but lacks a direct contractual relationship with the insurers, acting instead through an intermediary insurance broker. The Court held that the absence of a direct relationship with the parties to the insurance contract does not preclude the VAT exemption, provided the sub-agent has an indirect relationship with those parties through the intermediary taxable person to whom it is contractually bound. The Court further grounded its ruling in the principle of fiscal neutrality, confirming that traders must be free to organise their commercial activities without forfeiting the benefit of the exemption under Article 13B(a).AI