JUDGMENT OF THE EUROPEAN COURT OF JUSTICE IN THE CASE B.G.Ż. LEASING SP. Z O.O. V DYREKTOR IZBY SKARBOWEJ W WARSZAWIE

The legal issue dealt with by the European Court of Justice in the case C-224/11 B.G.Ż. Leasing sp. z o.o. v Dyrektor Izby Skarbowej w Warszawie (the Judgment of 17 January 2013) is set in the context of implementation of tax legislation, i.e. regarding implementation of the Council Directive on the common system of value added tax (VAT) in the proceedings between the Polish tax authorities and a local leasing company. In the proceedings, the issue of the legal nature of related leasing and insurance services was posed, i.e. whether leasing services and insurance of leased item are considered as one complex legal transaction that fall under the same tax treatment or two separate legal transactions to which tax regulations (tax rates) apply separately. The subject of the proceedings was not the insurance contract and the leasing agreement concluded between the lessee and the lessor, and therefore the Court did not have access to them, but only the tax treatment of several services within one complex transaction.