+++ Croatia - VAT hike from 23% to 25% in March 2012 +++ France - announces 1.6% VAT TVA increase from 19.6% to 21.2% on 1 October 2012 +++ Belgium - EC Sales List despatches and arrivals reporting threshold cut +++ Barbados - IMF pushes for VAT rise +++ Switzerland - rejects a single VAT rate of 6.5% +++ Bulgaria - online VAT returns now compulsory +++ Gambia - to introduce VAT in 2013 +++ Denmark - cut in the threshold for reporting intra community despatches and arrivals EU - companies only due 'simple' reinterest on overpaid VAT +++ Sweden - small businesses must now submit full VAT returns +++ EU - issues further clarification of new 2015 one stop shop VAT compliance for electronic services +++ Sweden - EC Sales List reporting threshold for intra community supplies is dropped to SEK 500,000 +++ UK - Axa loses Denplan case as debtor collection on insurance is subject to European VAT +++ Switzerland - proposes hotel VAT exemption +++ UK - Jersey to raise stamp prices to compensate for loss of VAT low consignment loophole +++ Norway - electronic VAT returns now mandatory +++ Spain - denies the need for a further crisis VAT increase in 2012 +++ Hungary - refund of VAT credits has been extended +++ Norway - reduced VAT rate on food increased from 14% to 15% +++ China - exempts VAT on vegetables Jan 2012 +++ Ireland - Health Insurance Levy rates for policies have been increased. +++ India - new guidance on GST levied on insurance premiums +++ Germany - update on evidence for zero VAT rating of exports and intra community despatches +++ UK - new ESL quarterly reporting threshold of £35,000 +++ Cyprus - VAT rises 2% to 18% January 2012 +++ Czech Republic - proposes consolidating VAT rates at 19% in 2012 +++ Madeira - increase in VAT rate from 16% to 22% from 1 April 2012 +++ Luxembourg - new VAT rules on place of supply for transportation services +++ Czech - reduced VAT rises from 10% to 14% January 2012 +++ India - implementation of GST may not come till 2013 +++ Gambia - to introduce VAT in 2013 +++ France - delays increase in VAT from 5.5% to 7% on books till April 2012 +++ Channel Islands - to sue UK on withdrawal of VAT DVD and CD low value consignment relief +++ Lithuania - withdraws VAT cut on hotels +++ France - cuts VAT on ebooks January 2012 +++ Japan - to raise consumption tax from 5% to 10% in two stages +++ Greece - offers discounts on VAT liabilities settled by credit card instead of cash +++ Malta - VAT and IPT amnesty extended +++ Lithuania - drops VAT cut on newspapers and print +++ Italy - suppliers to non-resident companies may claim quarterly VAT refunds +++ Poland - childrens'clothing VAT rate rises from 8% to 23% following ECJ +++ Italy - changes tax point on services from date of cash received to date of completion of service +++ EU - issues new European VAT reform White Paper +++ Switzerland - stamp duty reform to leave tax on insurance premiums untouched +++ Ireland - captive insurers exempt from new government 2% premium tax levy +++ Romania - permits voluntary VAT deregistration at any point during year +++ Lebanon - confirms 2% VAT rise to 12% +++ Sweden - reverses double VAT on App's developers +++ Ireland - raises VAT on bread to 13.5 as well as standard rate to 23% +++ Italy - raises VAT again by 2% from 21% to 23% in Septermber 2012 +++ Portugal - votes for VAT hike on restaurants to 23% +++ UK - withdrawal of low-value consignment relief confirmed +++ Turkey - moves meat and poultry products from 8% reduced VAT rate to 1% rate +++ Fiji - VAT registration threshold has increased to FJ$ 100,000 +++ EU - targets VAT increases on company cars instead of income taxes +++ Germany - simplifies e-invoicing rules for VAT deductions +++ Ireland - confirms new 2% VAT rate rise to 23% from January 2012 +++ EU - refers Spain to ECJ on VAT rates +++ Ireland - confirms new lower tourist VAT rate to remain at 9% following standard rate hike news +++ Belgium - clarification of input VAT rules for company motor cars +++ EU - next round of proposals for European VAT reform due in new White Paper +++ UK - Low Value Consignment Relief will be scrapped from 1 April, 2012. +++ Ireland - confirms 2% VAT rise in 2012 +++ France - restaurant and renovations VAT rise from 5.5% to 7% as part of Nov 2011 austerity +++ China - Shanghai to pilot merger of VAT and Service Tax +++ Italy - recent VAT rise contributes to Euro inflation increase +++ Philippines - raised VAT reporting thresholds +++ Bulgaria - requested by EU to change laws on VAT refunds for non-resident traders +++ EU - pressure on Italy to ammend tax rules on imports in line with VAT Directive +++ Cyprus - requests EU permission to cut electricity VAT rate from 15% to 8% +++ EU - Parliament comments on European Commission VAT Green Paper +++ Turkey - increase in consumption taxes on drinks and vehicles +++ Italy – new Finance Act introduces measures to close dormant VAT numbers. +++ Croatia – electronic VAT invoices permitted with customer consent +++ Lithuania – VAT registration threshold increases to €45,000 per annum from 2012 +++ India – publishes a list of all services to be exempt from the proposed 2012 GST regime +++ Italy – reduced penalties for voluntary corrections of VAT returns +++ Portugal - raised VAT rates in Azores and Madeira +++ Malta - drops VAT rise on utilities +++ EU - plans VAT reforms to reduce fraud +++ Portugal - VAT increase with many goods from 13% VAT rate to standard 23% VAT rate +++ Dutch - VAT triangulation simplification changes +++ Norway - increases VAT on foodstuffs from 14% to 15% in 2012 +++ Iceland - requires non-resident traders to register for VAT on electronic supplies +++ Finland - 2012 budget levies 9% VAT on newspaper and journal subscriptions +++ EU - plans for single VAT rate for all 27 member states dropped +++ Spain and France - proposals for cut on VAT for e-books and digital publishing +++ Hungary - repealed VAT recovery rules as directed by European Court of Justice +++ Costa Rica - educational and medical services moved to 2% reduced rate +++ Singapore - new procedures to be adopted on GST compliance +++ Kenya - new VAT bill will levy tax on publishers +++ EU - new VAT rises contribute to increased European Union inflation +++ UK - to close Low Value Consignment Relief VAT relief loophole in Channel Islands +++ France - raise in insurance premium tax to 9% on health risks +++ Cyprus - VAT reduction on first time home buyers +++ Ireland - new 2% insurance levy Bill confirmed by Parliament +++ Taiwan and Belgium agree to reciprocal VAT refunds for companies +++ Greece - still reviewing VAT cut in 2012 +++ France - introduces new levy on hotel accommodation of 2% on top of 5.5% VAT +++ Hungary - announces 2% VAT hike to 27% in 2012 +++ Italy - confirms 1% VAT rise on 17 September 2011 +++ Japan - IMF pushes for Consumption Tax to rise to 15% from 5% to cut debt +++ Gulf States - evaluate 5% VAT introduction +++ Lithuanian - plans for reduced VAT on hotels and restaurants +++ Czech Republic - lower house of parliament backs VAT cut to 17.5% +++ Greek - unrest over 10% VAT increase on spend in cafes and restaurants +++ Jamaica - moves to slash GST to 12.5% +++ Australia - proposal to raise GST and withdraw insurance premium tax +++ Canada BC - HST to be replaced by PST and GST +++ Japan 5% consumption tax rise loses momentum +++ Cyprus 2% VAT hike may be delayed +++ Portugal increases VAT on electricity and natural gas +++ Germany - Tax Court rules that incomplete 13th Directive claim forms can be rejected +++ Greece - certain goods and services to be hiked to the standard rate from Sep 2011, more in Jan 2012 +++ India - GST rate to be between 16% and 20% when implemented in next financial year +++ Ireland - introduces new reduced rate of 9% for tourism industry from July 1st 2011 +++ China - starts process of taxing the turnover of online retailers traders +++ France - Changes to taxation of life insurance policies +++ Italy - IPT tax hike on motor policies +++ Finland - newspapers and journals are now subject to 9% reduced VAT rate +++ Netherlands - EC referal for breach of VAT on travel agents +++ Finland - drops plans for VAT and IPT increase from 23% +++ Netherlands - proposal to increase reduced VAT rate from 6% to 8% +++ Iran - increase in VAT rate to 4% +++ Ireland - cuts reduced VAT rate on tourism, construction and newspapers +++ EU - Ecofin delays insurance VAT exemption discussions again +++ Germany - extension to deadline for filing 2010 annual VAT returns to Dec 2011 +++ Ireland - potential new insurance premium tax to be charged on insurers +++ Portugal - escapes VAT rise for the moment with EU bail out; but goods on reduced rate to be revised +++ Ireland - pressure for VAT increase on basics +++ Italy - the Hunting Accident Victims Fund has risen to 4.7625% +++ St Lucia - plans to implement VAT regime in 2012 +++ Slovakia - opposition parties push for 1% VAT cut to 19% +++ EU - may act on Channel Islands VAT loophole despite recent UK budget change +++ France - rejects call for EU budget share of national VAT take +++ EU - finance ministers agree to permit reduced VAT rate on restaurant food +++ Sweden - to challenge restriction from EU on VAT on non-profit organisations +++ Germany - EU pushes to extend exemption for VAT to all cost sharing groups +++ Netherlands - closes VAT recovery portal for one week due to technical problems +++ UK - Bank of England estimates that 2011 VAT increase caused 1%-1.25% inflation increase +++ Australia - to recast GST split between States +++ Romania - plans to increase VAT registration threshold +++ India - reduced Central Excise Duty rises from 4% to 5% +++ Poland - introduces VAT reverse charge on sales of goods +++ Gulf States - IMF pushes for the implementation of VAT regime +++ UK - VAT registration threshold increases to £73,000 per annum +++ Singapore - rejects GST cut calls despite inflationary pressures +++ China - introduces two new indirect tax charges on foreign traders +++ Ireland - government proposes to decrease reduced VAT rate to 12% for two years +++ Euro countries to force through tax harmonisation and VAT simplification +++ UK - to close Jersey postal VAT loophole for internet retailers +++ Czech Republic - to merge reduced VAT rate into 20% standard rate +++ Australia - proposed simplification of non-resident GST registration requirements +++ France - new backing on VAT rise to subsidise lowering of employer taxes +++ Peru - pass VAT cut proposal for March 2011 +++ EU - halts carbon trading for VAT fraud fears +++ Finance Minister quashes rumour of VAT increase to subsidise salary tax cut +++ Pakistan - IMF pushes for reformed GST implementation within six months +++ New Zealand - rules out further GST rise following recent increase to 15% +++ UK - VAT on corporate jets due +++ Philippines - possible VAT increase in 18 months to fund income tax cut +++ Greece - no further VAT increases required as govt assures markets +++ Australia - calls to impose non-resident GST registrations on foreign internet retailers +++ Austria - new flight aviation tax introduced requiring a fiscal representative +++ Cyprus - accommodation 5% reduced rate scrapped +++ Czech Republic - proposal to combine 10% reduced VAT rate into 20% standard rate +++ Spain - onward relief importers must provide local and destination country VAT numbers +++ South Africa - rumours of a VAT increase from current 14% standard rate +++ Greece - retrospective 2011 VAT increase on certain services +++ Venezuela - new threatened VAT increase withdrawn +++ Italy - IPT compliance to be simplified in 2011 for Freedom of Services insurers +++ Russia - Finance Minister says 18% VAT rate will have to increase in 2011 +++ Canada - Quebec Sales Tax increases from 7.5% to 8.5% in 2011 +++ Italy - to introduce reverse charge on mobile phones from April 2011 +++ EU - maintains minimum VAT rate at 15% until end of 2015 +++ Germany - Aviation Tax from 1 January 2011 requires fiscal representative +++ Italy - Road Accident Victims Fund insurance tax levy to rise in 2011 +++ Sweden - proposes 12% reduced VAT on restaurant meals +++ France - may delay cut to 5.5% VAT on ebooks until 2012 +++ Bulgaria - promises two VAT cuts in 2011 and 2012 +++ Venezuela - potential 1% VAT rise to 13% in 2011 +++ Cyprus - introduces 5% VAT on foodstuffs +++ Spain - denies rumour of new VAT rate increase from 18% to 20% in 2011 +++ Israel - VAT rate of 16% not to fall to 15.5% in 2011 as planned +++ France - triple play telecom services VAT to rise from 5% to 19.6% +++ Barbados - VAT increase by 2.5% +++ EU - many countries have not implemented 2011 'Admission Services' rules for live events and conferences +++ Greece - fresh tax amnesty +++ Indonesia - VAT return updated +++ China - proposes to simplify Business Tax with VAT +++ EU - plans review of European VAT systems to deal with fraud and 'VAT gap' +++ Slovakia - approves postponed 2009 VAT reclaims deadline +++ EU - T-Mobile loses payments as separate VAT exempt service ECJ appeal +++ Malaysia - increases Service Tax from 5% to 6% in 2011 +++ Lithuania - to change hotels to reduced VAT rate of 9% from standard rate of 21% +++ Ireland - to raise VAT in 2013 and 2014 from the current 21% to 23% +++ Portugal - the facility to reclaim Stamp Duty, payable on insurance policies, incorrectly paid is being withdrawn +++ Ghana - plans to increase VAT registration threshold from GHS 10k to GHS 90k +++ EU - Germany, Italy and Austria granted reverse charge option on VAT fraud susceptible goods +++ Pakistan - the new GST rate has been dropped from 17% to 15% to broaden the tax base +++ Portugal - there are no changes to the reduced VAT rates with the January 2011 VAT rate increase to 23% +++ Ukraine - cuts VAT from 20% to 17% in 2014 +++ Latvia - 1% VAT rise to 22% in 2011 +++ Kyrgyzstan - simplified VAT reporting to be introduced +++ Luxembourg - foreign VAT reclaim processing will continue to experience severe delays into 2011 +++ UK - HM Treasury assures insurers that new EU VAT Directive for Financial Services is on track and no threat to VAT exemption +++ Poland - Bill to increase VAT by up to 25% by 2014 submitted +++ US - Finance Committee leaves potential VAT introduction off agenda +++ Croatia - plans to bring many goods into VAT net to meet Euro entry requirements +++ Netherlands - drops the requirement for an IPT fiscal representative from 2011 +++ Malta - VAT on hotel stays increases from 5% to 7% +++ France - rejects VAT cut on e-books +++ Jersey - to increase GST by 2% to 5% in June 2011 +++ Germany - to reform VAT rates in 2011 +++ EU - threatens VAT charge on outsourced insurance services, inc claims handling +++ Malaysia - Service Tax to increase +++ Sweden - proposals for tough restrictions on import VAT onward export relief +++ Ukraine - VAT rate to fall 3% to 17% by 2012 +++ EU VAT exemption on insurance outsourcing under threat +++ Netherlands - reduced VAT rate for property improvements +++ EU - ECJ ruling limits VAT recovery on third party payments +++ Netherlands - IPT rate rises 2.2% to 9.7% in 2011 +++ Bulgaria - to consolidate tourism VAT rates at 9% +++ Germany - proposals to withdraw many reduced VAT rates including on hotel accommodation +++ France - confirms new 19.6% VAT on triple play telecom services +++ Greece - government denies plan to increase VAT to 25% +++ EU - transfer of re/insurance contracts to be VAT exempt in new Directive +++ Portugal - 2nd VAT rise of 2% to 23% +++ New Zealand GST 2.5% rise to 15% from Oct 2010 +++ Thailand - 7% GST rate confirmed till 2012 +++ India - GST implementation may be delayed +++ Colombia - VAT services exported to non-residents confirmed as exempt +++ Puerto Rico - VAT to be introduced to replace sales tax +++ Romania - new VAT return +++ Singapore - clarification of VAT time of supply rules +++ Slovakia - increases VAT 1% to 20% +++ EU - 2009 VAT refund deadline delayed from Sep 2010 to Mar 2011 +++ Australia - Victoria Fire Service Levy to be scrapped in July 2012 +++ Romania - increases VAT 5% to 24% +++ UK - confusion on UK 1% IPT increase +++ Andorra - 4.5% VAT to be introduced +++ Bulgaria - to introduce insurance premium tax at 2% +++ Finland - VAT and IPT raised to 23% +++ Canada - HST introduced in British Columbia and Ontario +++ France - changes requirements for fiscal rep on insurance +++ +++ Croatia - a 10% motor 3rd party liability risk premium will be charged from 2009 to cover traffic accident costs +++ Panama - increases VAT to 7% +++ Estonia - reduced VAT increased from 5% to 9%; many items now on standard rate +++ Mexico - increases VAT 1% to 16% +++ EU - Revised Mutual Assistance Directive issued to assist tax authorities share information on VAT and IPT +++ France - Natural Disaster Compensation Scheme has increased again from 8% to 12% +++ Taiwan - introduces VAT refunds for non-resident businesses +++ India - sets CENVAT at 10.3% +++ Hungary - Aircraft hull and aviation liability is now exempt from the 1.5% Fire Brigade Charge +++ Ireland - government insurance levy on non-Life increases from 2% to 3%; new 1% levy on Life +++ Italy - potential to defer VAT payments to point where cash received +++

International IPT News

Below are a few of the insurance premium tax news items that we produce regularly in our FREE IPT News e-alert. Click here if you would like these free IPT alerts

Click here to read about IPT Quote, the market's only global insurance premium tax calculator, and how it can save you money.

DEC 11 - HUNGARY

Parliament has passed the 2012 Tax Act which will introduce a tax on compulsory motor liability policies. The official Goverment Gazette published on 30th November 2011 also states that it will be capped per vehicle and day.

DEC 11 - FRANCE

The proposal to increase insurance premium taxes on French health insurance policies has been implemented in spite of the Senate voting against elements of the rise last week.

NOV 11 - NEW ZEALAND

The Earthquake Commission Levy is proposed to increase from 5 cents to 15 cents per $100 of insurance cover from 1 February 2012.

OCT 11 - IRELAND

Parliament has passed all stages of the Insurance Amendment Bill which imposes a 2% levy on certain non-life insurance policies.

OCT 11 - FRANCE - IPT HIKE

The French government has introduced new details of insurance premium tax on health policies.

SEP 11 - GREECE - NEW AMNESTY

The Greek parliament has passed legislation for another amnesty for settling outstanding IPT.

SEP 11 - Australia - Victoria rate changes

Increase of Victoria Fire Service Levy rates for property and fire risks and general liability in the Country District.

Aug 11 - South Australia - IPT rate change

The South Australia IPT rate on most non-life insurance policies has been recently changed.

Jul 11 - France - Changes to taxation of life insurance policies

There is a proposal to increase the tax imposed on life insurance contracts.

Jul 11 - Italy - IPT tax hike on motor policies

Increase of Insurance Premium Tax on motor policies.

Jun 11 - USA - surplus lines changes

There have been changes to reporting on Surplus Lines in Florida and Arkansas.

Jun 11 - Taiwan - fire levy increase

There have been changes to the Business Receipts Tax, which is charged on insurance premiums.

Jun 11 - germany - marine taxes

Changes to reporting requirements for marine insurance.

May 11 - uruguay - premium tax cut proposal

The government has put forward a cut in VAT from 22% to 20%. VAT is levied on insurance premiums.

May 11 - USA - kentucky tax hike

The new 2011-12 schedule for local government premium taxes has been published. This vast majority of municipality rates have been increased.

april 11 - turkey - premium tax amnesty

There is to be a tax amnesty until the end of May for the tax years 2006-09.

april 11 - australia - fire levy increase

The Fire Service Levy rates in New South Wales have been increased for property and fire policies from 3 May.

Mar 11 - netherlands - reminder on ipt rise

The premium tax on insurance contracts rose this month from 7.5% to 9.7%.

Mar 11 - mexico captive insurance tax changes

A new tax agreement with Bermuda will lower the standard 40% withholding tax. It is anticipated that this will stimulate Mexican companies to set-up their captive operations in Bermuda.

FEB 11 - Ukraine insurance tax change

There have been modifications to the tax regime for resident insurers.

FEB 11 - Hungary premium tax law change

The new special tax on insurance premiums, and other financial services, has been extended to 2014. It has been modified from the flat rate of 6.2% on premiums to a sliding scale calculation.

jan 11 - australia Fire levy

The fire service levy in Victoria and New South Wales has been reduced.

jan 11 - italy insurance tax rise

There has been an increase in the Road Accident Victims Fund charge.

dec 10 - zambia insurance premiums subject to VAT

VAT is to be extended to insurance premiums.

dec 10 - italy ipt changes

The much disliked premium tax reporting system is being improved for Freedom of Services insurers.

Nov 10 - Dutch ipt to rise 2.2% to 9.7% in 2011 till 2015

The Netherlands has made changes to the planned insurance premium tax increase (see Oct 10 below). Dutch premium tax will increase from 7.5% to 9.7% on 1 March 2011. It will then decrease to 9.5% in January 2015. The 0.2% difference is to compensate the government for moving the implementation date from 1 January 2011 to 1 March 2011.

nov 10 - Sri Lanka insurance tax changes

Reinsurance commissions and claims are to be exempted from VAT.

NOV 10 - Hungary passes premium tax law

The Hungarian parliament ratified the new premium tax law on insurance companies. The new tax will be charged on premium income as follows: 1.5% up to an annual premium income of HUF1 billion; 3% between HUF1 billion and HUF8 billion; and 6.4% above that.

nov 10 - EU insurance VAT exemption update

The UK's HM Treasury has assured the insurance market that it remains satisfied that the reform of the Financial Services VAT exemption is going forward as planned. Elsewhere, it is being reported in the international press that other countries are less content.

nov 10 Malaysia premium tax rise

Taxes on insurance premiums are proposed to increase from 5% to 6%.

nov 10 - Greek update

It is anticipated that the new Private Life Insurance Guarantee Fund will come into force on 1 January 2011 - but we are waiting on details.

OCT 10 - Netherlands insurance premium tax rise

The new Dutch collation government has proposed an increase in IPT from 7.5% to 9.5% from 1 January 2011.

OCT 10 - Hungary insurance brokers face premium tax

Following the introduction of the new premium tax on local insurers (Click here to read more), the government has raised the possibility of a similar levy on brokers.

OCT 10 - UK tax authorities change premium tax apportionment plans

The tax authorities (HMRC) have backed down from plans to impose standard premium apportionment techniques on certain insurance classes.

Sep 10 - australia reduces insurance premium tax burden

Victoria Fire Services Levy, is to be scrapped from 1 July 2012. It is to be replaced by a local government property-based rate.

Sep 10 - Bulgaria insurance premium tax delayed

The Parliament broke up for the summer break prior to the approval of the new 2% IPT on premiums. The Bill be will not therefore be ratified in time for the September implementation. We will keep you posted.

Sep 10 - US to simplify surplus lines taxes

President Obama has now signed the Dodd-Frank Act. This includes provisions for the simplification of Surplus Lines premium allocation rules and obligations between States from July 2011.

AUG 10 - peru premium tax increase

Potential cut in VAT, charged on insurance contracts.

AUG 10 - Cayman Islands introduces taxes on insurance premiums

Potential new tax to be implemented on premiums.

Jul 10 - Pakistan raises taxes on premiums

Federal Excise Tax on insurance premiums has risen 1%.

Jul 10 - France ups parafiscal charge

The National Guarantee Fund levy is rising.

Jul 10 - Italy demands new disclosures on freedom of services insurers

There are new disclosure requirements being introduced for insurers.

Jun 10 - bulgaria set to introduce insurance premium tax

As first reported by TMF in May, Bulgaria has formalised plans to introduce insurance premium tax. This includes premiums from Freedom of Servcies insurers located outside of the country. The new rate will be 2%. Life and Reinsurance is set to be exempted. Click here for an update from TMF Bulgaria.

Jun 10 - UK increases Ipt by 1%

Click here to read about the Emergency Budget increase.

May 10 - SPain new parafiscal charges

There has been an update on charges on certain insurance lines.

May 10 - philippines increases insurance taxes

There are advanced proposals to raise VAT, liable on insurance premiums, from 12% to 15%.

Apr 10 - Ireland threat of 2% insurance levy increase

Following the placing into administration last week of Quinn Insurance, Ireland's second largest insurer, a potential 2% increase in the Government Levy on insurance premiums has been suggested to cover the cost of unmet claims. This comes on top of a 1% increase to 3% in June 2009. It has been suggested that health, travel, marine and aviation cover will be spared from this increase.

Apr 10 - bulgaria threatens insurance premium taxes

As part of measures to cut down on the avoidance of taxes by foreign insurers, the Bulgarian authorities have floated the idea of a 10% tax on all insurance premiums. It is not clear if this will apply to foreign Freedom of Services insurers. A 2% increase in VAT is also proposed.

Apr 10 - new zealand fire service levy

The insurance industry and fire service have proposed a reform of the Fire Service Levy, chargeable on insurance premiums.

mar 10 - uk insurance premium tax changes

There have been a number of changes to the UK's IPT regime, including:
- modifications of the closure of the IPT splitting regime loophole (Homeserve case) to exclude personal insurance
- IPT has now been brought into the same revised documentation retention requirements as VAT
- increased penalty regime

Mar 10 - Panama stamp duty on insurance

Stamp duty, which is charged on insurance, is to be overhauled.

Mar 10 - US Non-resident reinsurers tax

Proposal for an increase in taxes on non-resident reinsurers.

Mar 10 - Germany fire Brigade charges

The Fire Brigade charge in Germany has been split to allow for better allocations.

feb 10 - EGypt withholding Tax on insurance

The requirements on withholding tax, charged on insurance in some circumstances, has been modified.

feb 10 - ireland insurance levy

The Life insurance levy payment is being brought forward.

feb 10 - France Insurance premium tax requirements

There are new requirements for insurers seeking IPT registration with the French tax office.

jan 10 - ireland increases insurance taxes

There has been an increase in the health insurance levy. It has risen from Euro160 to Euro185 per adult subscriber.

jan 10 - singapore new insurance levy proposed

Plans have been drawn up for a new levy to cover the collapse of life or accident & health insurers.

JAN 10 - Australia Insurance Tax Proposals

Proposals have been put forward for the scrapping of the Fire Brigade Charge and shake-up of the States' insurance taxes.

dec 09 - finland changes reporting deadlines

The deadlines for filing IPT returns in Finland have been brought forward for both paper and electronic returns.

DEC 09 - uk ipt loophole closed

The Chancellor has closed the tax loophole which allowed a separate administrative contract on personal lines insurance to be IPT exempt. This follows the loss, in the High Court, of the Homeserve case by HMRC in June this year. As an unintended consequence, insurance brokers now face extensive reporting requirements.

Dec 09 - french parafiscal charges changed

There will be a change in the calculation of GAREAT on French terrorism risks from 1 Jan 2010.

Dec 09 - austrian non-admitted insurance changes

The rules have changed for non-authorised insurers active in Austria.

dec 09 - belarus taxes on insurance

There are changes to withholding taxes for insurance and reinsurance.

dec 09 - australian parafiscal charge cut

There is a reduction of the Victoria Fire Service Levy.

dec 09 - india insurance stamp duty

There is a proposal for a sharp increase in Stamp Duties on life insurance.

NOV 09 - mexico increases TAX on insurance premiums

The Mexican authorities have been forced into increasing VAT from 15% to 16% to help cope with dwindling oil revenues. VAT is levied in insurance premiums.

nov 09 - china may look to tax non-admitted insurers

The State authorities issue a guidance notice stating that income / withholding tax is due on insurance premiums written in China by non-admitted insurance carriers.

oct 09 - uganda VAT ON INSurance

The tax authority has withdrawn VAT on insurance

OCT 09 - Hungary new insurance levy

Details of the calculations for the new Parafiscal Charge on motor insurance are now available

OCT 09 - USA NON-ADMITTED INsurance premium tax

The House of Representatives has passed the Nonadmitted and Reinsurance Reform Act. This allows risk managers to tap the nonadmitted market from the outset and standarise surplus lines tax calculations.

SEP 10 - Finland increases ipt to 23% in 2010

The Finnish government has proposed a 1% increase in VAT from July 2010. There will be a similar increase in insurance premium tax.

Sep 09 - USA insurance tax increases

New Jersey is increasing surplus lines taxes.

Sep 09 - Australia parafiscal charge changes

There has been a sharp increase in the fire service levy and linked stamp duty.

Sep 09 - Israel insurance charge increase

Following the recent VAT increase, there is a corresponding insurance levy rise.

Sep 09 - New Zealand life changes

Proposals on increases in life insurance taxes expected to be ratified this month.

Aug 09 - Australia insurance stamp duty refunds

Following a recent tax case, there is the potential for insured parties to reclaim stamp duty on non-Life policies in New South Wales and other territories.

Aug 09 - Taiwan insurance taxes

The Tax Reform Committee is proposing taxing income on investment-linked life insurance products.

Aug 09 - US proposes new insurance premium tax

As part of the Obama health reforms, the Senate Finance Committee is reviewing proposals for IPT on high-cost healthcare plans to be met by insurers.

Jul 09 - Further Spanish IPT cuts

The Fondo del Consorcio de Compensacion de Seguros para la liquidacio is to be cut. Also, the Fondo Nacional de Garantia on hunting and compulsory travel insurance are to be abolished.

Jul 09 - Georgia abolishes withholding tax

As part of a wider tax reform, Georgia has scrapped withholding taxes (income taxes) on all insurance and reinsurance.

Jun 09 - Spanish IPT changes

The National Guarantee Fund or Fondo Nacional de Garantia is being reduced from 3% to 2%.

Jun 09 - Millions of UK IPT saved on overturned Homeserve ruling

The UK High Court handed down its ruling on the appeal of the Homeserve insurance premium tax appeal. It found that no IPT was due on separate insurance intermediaries' contracts. This case was heard following the ruling at the VAT Tribunal last year that Homeserve should have charging UK IPT for the administrative role it had taken in 3rd-party insurance contracts.

Jun 09 - Philippines moves to abolishes IPT on life insurance

Documentary stamp and insurance premium tax on life insurance are being scrapped.

May 09 - Hungary clarifies IPT Parafiscal charges on aviation

Aircraft hull and aviation liability is now exempt from the 1.5% Fire Brigade Charge.

May 09 - Iceland cuts property IPT

Fire Valuation Fee has been reduced from 0.0037% to 0.00021% of the property fire insurance value for 2009.

May 09 - Beglium IPT withdrawn on credit risks

The 9.25% insurance premium tax on credit insurance has been withdrawn. Any payments of IPT by the insuren may be refunded.

Apr 09 - UK imposes Sarbannes-Oxley type rules on IPT

This month's UK budget imposed potential personal fines on senior accounting officers who submit incorrect insurance premium tax filings.

Apr 09 - Ireland's Government Insurance Levy increases

There has been an increase in the levy on non-Life insurance policies from 2% to 3% from 1 June 2009. A similar levy on Life Insurance policies is to be introduced at the same time, at 1% of the gross premium. Stamp duty remains unchanged.

Apr 09 - Croatia new insurance tax charges

In Croatia, a 10% motor third party liability risk premium will be charged for Health Insurance related to traffic accidents.

Mar 09 - Italy reduces a number of insurance taxes

The Italian Hunting Accident Victims' Fund - changed to 5% of 94% of premium from 2009. The Road Accident Victims' Fund - changed to 5% of 94% of premium from 2009.

Mar 09 - France increases insurance levy

There has been a further increase in the French Natural Disaster Compensation Scheme (CAT NAT). On 20th March 2009, this rose from 8% to 12%. This charge was last increased in the summer of 2008, when it rose from 4% to 8%.

Feb 09 - Finland Insurance Levy on Motor

The Finish authorities have confirmed that the Traffic Safety Charge for 2009 will be Euro 7.2 million. This will be collected from motor insurers based on their share of motor insurance premiums.

Feb 09 - Poland motor liability exempt from Parafiscal Charge

In Poland, motor liability insurance is now exempt from the Fire Brigade Tax from 2009.

Feb 09 - Sweden Life Insurance tax changes

Swedish Group Life insurance from either Swedish or foreign insurers is exempt from IPT.

Feb 09 - Greece Stamp Duty reform underway

On 5 February, the Greek Parliament passed a draft bill abolishing Stamp Duty on Life and Damage insurance from 1 January 2009. The law is not yet in force as this change has not yet been published in the Government Gazette. It is anticipated that Greek Stamp Duty will be scrapped on all other classes of insurance from 1 January 2010.

Feb 09 - Italian Life Insurance simplifications

Paperwork requirements on Life Insurers is being reduced.

Jan 09 - French insurance tax increases

Taxes on complementary health insurance companies (including mutual and providents) is rising from 2.5%.

Jan 09 - UK IPT captive case review

A tax tribunal is undertaking a fresh review of the DSG International (old Dixons Group) captive IPT case.

Jan 09 - Luxembourg IPT changes

From the start of 2009, international shipping vessels registered in Luxembourg are IPT exempt.

Jan 09 - Romania cuts insurance levy

From 1st Jan, the supervisory levy was cut to 0.4% of the gross premiums.

Dec 08 - Spanish IPT cut

The temporary cut in Spanish insurance premium tax of 75% on public transport had been re-introduced. This was last applied in 2006. It has now been extended to all insurance for 2008 and 2009.

Dec 08 - Portugal insurance levy increase

INEM, the Medical Emergency Services Fund, will increase from 1% from 1st Jan 2009. This Parafiscal Charge relates to life, sickness, labour, accident, personal accident, car and hunt cover.

Nov 08 - Ireland IPT new levy on health insurers

To fund new tax reliefs on health care, the Finance and Health Ministries have announced a new levy on health insurance providers. This will be calculated on a per subscriber basis - Euro 160 per adult. Note that this levy is on the insurance provider. It will therefore be up to the market to determine how much will be passed onto the subscribers.

Nov 08 - French IPT confirmation of ACOSS changes

The Parafiscal tax for Securité Sociale is no longer under the responsibility of ACOSS. Instead, it has been transfered to URSSAF 67307 SCHILTINGHIEM. URSSAF is Union de Recouvrement de la Sécurité Sociale et des Allocations Familiales. The filings have been changed too.

Nov 08 - Philippines insurance stamp duty

The stamp duty charges on health and accident policies issued by non-life insurers have been confirmed at PHP 0.50 on each PHP 200. This contrasts with the higher non-life insurance policy stamp duty.

Nov 08 - French VAT on insurance promotion

In a recent tax case, the Appeal Court found that developing new client prospects should not be regarded as an exempt supply. It is therefore subject to French VAT.

Oct 08 - Italian insurance tax changes

The latest fiscal budget is bringing in new tax increases for foreign insurance subsidiaries or branches.

Oct 08 - UK Homeserve to appeal IPT ruling

It is reported that Homeserve will challenge the recent ruling which found that IPT should be charged on 'arrangement and administration' fees. See Sept news below.

Oct 08 - Poland set to abolish 'Religa' tax

In October 2007, the Polish tax authorities introduced a new levy on third party motor insurance to cover road accident treatment costs. It was calculated as 12% of the insurance premium. The insurance chamber of commerce now expects this charge to be scrapped from Jan 2009.

Sept 08 - UK IPT tax case draws in arrangement fees into Insurance Premium Tax net

In a recent Insurance Premium Tax Tribunal ruling, fees for the arrangement and administration of an insurance contract were held to constitute a taxable insurance supply, and therefore liable to IPT. Attempts to distinguish this service from the principle insurance cover to limit the IPT were rejected.

Sept 08 - Costa Rica allows tax relief on insurance premiums

From Sept 08, the National Insurance Institute will lose its monopoly. This means insurance premiums from other insurers will now be tax deductible.

Sep 08 - Italian IPT pre-payment changes

The annual pre-payment on Italy IPT is to increase from 12.5% to 14%. For 2009, this payment is due by 30 November 2008.

Aug 08 - France IPT increases Parafiscal Charges on Insurance Premiums

The French tax authorities have increased the Natural Disaster Compensation Scheme (CAT NAT) Levy, which is charged on top of insurance premium tax on most non-Life contracts. It has increased from 4% to 8%.

Aug 08 - Macedonia introduces supervisory levy

Following the transfer of insurance regulation from the Ministry of Finance to a new independent body, there will be a levy on insurance contracts. The amount, and basis for calculation, has yet to be announced.

Jul 08 - Barbados increases insurance premium tax rate

The latest budget has included a provision for the increase of insurance premium tax by 1%. In addition, there will be an increase in the annual licence fee for insurers from $5,000 to $20,000

Jul 08 - New Mutual Assistance Directive covering European IPT

The EU's Mutual Assistance Directive has been updated. This instrument provides powers for the various national tax authorities to exchange information on the activities of insurers within each other's jurisdictions. This covers IPT and VAT. The Directive is becoming the favoured tool of the tax authorities to check that the data submitted to them by Freedom of Services insurers properly reflects the risks entered into.

Jun 08 - Australia clarifies non-resident insurance rules

Non-resident insurers operating in Australia without a principle branch or office are subject to withholding tax. In a ruling involving a Lloyd's syndicate using an Australian cover holder agent, this principle was upheld even though the agent held binding authorities for the underwriter.

Jun 08 - Greek IPT authorities to abolish Stamp Duty on Insurance Premiums

The Greek Finance Minister has announced plans for the withdrawal of Stamp Duty on Insurance Premiums. Greek Stamp Duty on insurance contracts is levied in addition to Greek IPT and Parafiscal Charges. The plan is to abolish Greek Stamp Duty on Life insurance from January 2009, and on non-Life insurance from January 2010.

May 2008 - Newfoundland, Canada withdraws RST

The tax office in Newfoundland has dropped the 15% Retail Sales Tax. This will apply from 1 Jan 08; any tax collected to date will be refunded, and should be repaid to clients.

May 2008 - Bulgaria to introduce new insurance levy

The Bulgarian tax authorities are looking at bringing in a 0.1% charge to cover natural catastrophes, including earthquake or flood damage. This mirrors the new Romanian plans.

Apr 2008 - Sweden pension insurance changes

Freedom of Service pension insurers now have to report to the Swedish tax authorities on the values of any contracts written. From 1st May, resident persons in Sweden will be able to deduct contributions on pension insurance contracts with European insurers.

Apr 2008 - German IPT authorities identify surety reinsurance for insurance tax

Generally, there is no IPT on reinsurance contracts. However, this year, the German authorities has clarified that surety insurance is liable since there is no underlying insurance contract.

Apr 2008 - US clarifies foreign insurance FET exemptions

The US' Internal Revenue Service has provided guidance on the situations where a foreign insurer may be eligible for exemption for Federal Excise Tax ('FET') when the risks are reinsured with a foreign insurer not entitled to an exemption.

Mar 2008 - Appointment of Fiscal Rep no longer required in UK IPT

The UK’s 2008 budget formalised the dropping of the requirement of foreign insurers to appoint a UK fiscal representative. For some time the UK’s tax authorities have not been insisting on a fiscal rep being in place - instead merely asking for a named, in-country agent. After long consultation with the industry in 2007, this is now the official position.

Jan 2008 - Dutch IPT authorities raise insurance tax to 7.5%

There has been an increase in the Dutch taxes on insurance premiums. The standard IPT rate will increase from 7% to 7.5% on all policies maturing after 1 March 2008. This increase matches similar European-wide IPT rate increases, including the 2007 increase in German IPT from 16% to 19% for many classes.

Jan 2008 - Iceland overhauls Fire Parafiscal Charges

From 1st Jan 2008, a new Parafiscal Charge, Fire Valuation Tax, has been introduced in Iceland. It is charged at 0.0037% of the fire insurance value of the property. It is replacing the House Valuation Tax, which was 0.01% of the sum insured.

Jan 2008 - Portugal Motor Guarantee Fund

From the 1st Jan 2008, the calculation of the contribution to the Motor Guarantee Fund will change to 2.5% of the compulsory 3rd party liability premium plus 0.21% on the motor insurance premium.

Jan 2008 - Cyprus and Malta adopt the Euro

From the 1st Jan 2008, Cyprus and Malta will adopt the Euro. For insurance stamp duty calculations in Cyprus, the conversion rate has been set at Euro 1.71 to the Cypriot Pound.

Dec 2007 - French Motor Insurance Parafiscal Charge Hike

The National Guarantee Fund levy, payable on motor and hunting risks, will rise from 0.1% to 0.6% from 1st January 2008.

Nov 2007 - Georgia drops 1% charge for supervisory body

The change in Georgia from the old insurance supervisor to the new FMS appears to include the elimination of the 1% Parafiscal Charge on local revenues.

Nov 2007 - UK IPT authorities apply Kvaerner ruling to foreign insurers

The UK tax authorities have attempted to apply the precedent established in the 2001 Kvaerner ruling to draw in foreign insurers for UK IPT. In a VAT tribunal ruling HMRC relied upon the principles of the case to assess part of DSG International (the old Dixons Group).

Sep 2007 - Changes to Polish Parafiscal Charges

Motor liability contracts are to include a 12% Parafiscal Charge as contribution for medical care given at road accidents.

Aug 2007 - Decrease in Portugal's Insurance Institute Charges

The Parafiscal Charge levied by the Portuguese Insurance Institute is to be lowered from 0.25% (0.05% on Life) on all contracts down to 0.23% (0.046% on Life).

Jul 2007 - BELGIUM IPT CHANGE

From 1 May 2008, compulsory insurance coverage is required for terrorism risks excluding: certain property and standablone terrorism contracts.

Jun 2007 - Romania introduces Catastrophe Levy

A new Parafiscal Charge is being proposed in Romania to cover Catastrophic Risks.

Apr 2007 - Swedish IPT on 3rd party motor liability risks

Underwriters are now liable from 1st July to collect IPT on 3rd party motor cover on Swedish motor vehicles. The IPT is calculated at 32% of the gross premium.

Mar 2007 - Ukraine changes Premium tax calculation

From the start of 2007, Ukrainian premium tax calculation is net of domestic reinsurance.

Feb 2007 - Romania cuts Guarantee Fund Levy

The Policyholders' Protection Fund Levy, which covers insolvency of insurance companies for all non-Life insurance, has been reduced from 1% to 0.8%.

Jan 2007 - Italy motor damage tax clarification

The Italian tax authorities have clarified that motor owner damage will be subject to the regular 12.5% IPT rate. This overturns an earlier decree implying a separate rate of 21.25%.

Jan 2007 - Portugal IPT contribution lowered

From 1st Jan 2007, the contribution to the Portuguese Insurance Supervisory Authority was cut from 0.25% for 2006 to 0.23% for 2007.

Dec 2006 - German IPT increase

From 1^st Jan 2007, the German insurance premium tax rate will rise from 16% to 19% on many classes. This tracks a similar increase in the German VAT rate - now also 19% from 1st Jan 2007. This rate applies to most classes of insurance tax - fire insurance at 11% IPT is the only major exception (there is also a Fire Brigade Parafiscal Charge to be added).

Nov 2006 - Greek IPT re-branding and rate changes

Turnover Tax (Foros Kykloyergassion) is changing its name to Premium Tax (Foros Asfalistron). Also, IPT on fire risks is changing to 20%.

Oct 2006 - French IPT levy increase

There will be an increase in the National Catastrophe premium. This tax will increase from 2% to 4% from November 2006. This Parafiscal Charge is levied on property insurance.

Sept 2006 - Hungary Fire Brigade Charges

From the start of 2007, Fire Brigade levies will be 1.5% of premiums paid under Freedom of Services risk insurance.

Aug 2006 - Italian Road Accident Victims' Fund

The percentage of premium used as the basis for the calculation of the Road Accident Victims' Fund is changing to 95%.

Jul 2006 - Polish Chamber of Insurance levy

The PIU's Parafiscal Charge on risk contracts is moving to 0.026% of the premium.

Jun 2006 - Spanish IPT temporary discount on public transport risks

Insurance policies covering passengers and goods on public transport during 2006 will be liable to a reduced IPT rate of 1.5%. The normal rate is 6%.

May 2006 - Slovenian deadline changes

Fire Brigade charges are set to become due within 15 days after the end of the reporting month.

Apr 2006 - Slovenia now imposes motor insurance levy

From Mar 2006, there is a 6.5% levy on 3rd party motor liability insurance. This is payable to the Health Insurance Institute.

Mar 2006 - Moldova increased withholding tax on reinsurance

The tax authorities have increased from 2% to 10% the withholding tax on outbound reinsurance premiums. This applies from the start of 2006.

Jan 2006 - Belgian IPT authorities to drop requirement for a fiscal representative

In a move to help lower the cost of compliance, the Belgian authorities are no longer insisting that insurers providing FOS risk cover have to appoint a fiscal representative. Instead, they may file direct, or use local brokers. The requirement for payments from a local Belgian bank account remains in place.

To learn more, contact our IPT experts:

iptax@tmf-group.com

+44 (0)870 067 8881