“Insurance Transaction And Proportional Deduction Of VAT In Rádio ...

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Tuesday, January 6 2026 Tax July 16, 2021 Analysis: “Insurance Transaction and Proportional Deduction of VAT in Rádio Popular” by Darya Budova

Darya Budova

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On 8 July 2021, the Court of Justice handed down its judgment in Rádio Popular (C‑695/19).

Rádio Popular is a Portuguese company that sells household electrical appliances and other computer and telecommunications equipment. When selling its products, Rádio Popular offers its customers an extension of the warranty. This extension is provided through an insurance contract concluded between an insurance undertaking and the purchaser of the products. It entails that an insurance undertaking guarantees the repair or replacement of the product, in event of a claim, beyond the period covered by the warranty provided by the manufacturer. Rádio Popular charges the customer for the warranty extension on top of the sale price of the product

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