+++ EU - 2009 VAT refund deadline delayed from Sep 2010 to Mar 2011 +++ Poland - 1% VAT increase to 23% +++ Australia - Victoria Fire Service Levy to be scrapped in July 2012 +++ UK - VAT to increase from Jan 2011 +++ Romania - increases VAT 5% to 24% +++ UK - confusion on UK 1% IPT increase +++ Andorra - 4.5% VAT to be introduced +++ India - GST to be implemented April 2011 at three standard rates +++ Bulgaria - to introduce insurance premium tax at 2% +++ Finland - VAT and IPT raised to 23% +++ Belgium - the 9.25% insurance premium tax on credit insurance has been withdrawn +++ Canada - HST introduced in British Columbia and Ontario +++ Hungary - implements insurance premium tax +++ Bulgaria - Intrastat reporting thresholds increased +++ UK - HMRC backs down on VAT on InsuranceWide comparison website +++ France - changes requirements for fiscal rep on insurance +++ Bulgaria - New proposals being pushed with the World Bank to introduce mandatory Catastrope Fund to cover earthquakes etc. +++ +++ EU adopts new VAT Directive on electronic invoices +++ Portugal - increased VAT by 1% to 21% +++ New Zealand - increases GST to 15% +++ Spain - VAT rate increases to 18% +++ Croatia - a 10% motor 3rd party liablitiy risk premium will be charged from 2009 to cover traffic accident costs +++ Czech Republic - new rules on non-resident traders extends the requirement to VAT register +++ Greece in second emergency VAT increase from July +++ Hungary - increased VAT rate to 25% +++ Czech Republic - proposal to change VAT payment point to when cash received +++ Mexico - simplification of VAT reporting +++ EU - ECJ court ruling imposes VAT on salary sacrifice schemes and vouchers +++ Italy - extends reverse charge on VAT for foreign companies +++ Denmark - extension of VAT reverse charge on services from non-resident suppliers +++ Panama - increases VAT to 7% +++ Denmark - overhaul of VAT registration process to comply with EU employment law +++ Estonia - reduced VAT increased from 5% to 9%; many items now on standard rate +++ France - National Guarantee Fund levy on insurance premiums is rising +++ Mexico - increases VAT 1% to 16% +++ Estonia - 2% increased VAT from July 09 to help combat financial crisis +++ EU - New proposals to force all EU member states to switch to monthly VAT reporting to help combat fraud +++ EU - more proof required for VAT import exemptions for onward supply relief +++ EU - Revised Mutual Assistance Directive issued to assist tax authorities share information on VAT and IPT +++ EU - new electronic service to verify authenticity of VAT numbers +++ Finland - Traffic Safety Charge for 2009 will be Euro 7.2m +++ France - Tough new invoice requirements to help combat fraud +++ Taiwan - introduces VAT refunds for non-resident businesses +++ France - French Motor Insurance Parafiscal Charge hike from 0.1% to 0.6% +++ France - Natural Disaster Compensation Scheme has increased again from 8% to 12% +++ France - New information requirements for foreign companies applying for non-resident VAT registrations +++ Taiwan - introduces VAT refunds for non-resident businesses +++ France - Confirmation of changes to ACOSS levies, which are now managed by URSSAF +++ Germany - New IPT levy on Surety and Financial Guarantee reinsurance +++ India - sets CENVAT at 10.3% Germany - valid VAT number may not be sufficient evidence alone to allow for zero rating on intra-community supply +++ Germany - proposal to scap the requirement for annual VAT returns +++ Greece - withdrawal of Stamp Duty underway; Life and Damage insurance now exempt +++ Hungary - rules on tax point (now when invoice paid) creates risks for VAT recovery +++ India - many new activities brought into Service Tax regime +++ Hungary - Aircraft hull and aviation liability is now exempt from the 1.5% Fire Brigade Charge +++ Ireland - New retrictions on VAT relief on bad debts +++ Ireland - government insurance levy on non-Life increases from 2% to 3%; new 1% levy on Life +++ Mexico - simplification of VAT reporting +++ Italy - Hunting Accident Victims' Fund changed to 5% of 94% of premium +++ Italy - Scraping of the requirement on VAT-registered businesses for the annual filing of lists of customers and suppliers +++ Italy - Court ruling that VAT reclaims deadline should be two years +++ Italy - potential to defer VAT payments to point where cash received +++ Latvia - standard rate VAT increased by 3% to 21% from Jan 2009 +++ Latvia - 2% VAT increase to take standard rate to 23% from 2010 +++ Luxembourg - Fiscal representation revived for importers of goods +++ Luxembourg - international shipping vessels registered in Lux are IPT exempt +++ Netherlands, The - Tax authorities increase IPT rate from 7% to 7.5% +++ Poland - Potential for quarterly VAT returns +++ Poland - Plans for reverse charge on consignment stock +++ Poland - New 12% Parafiscal Charge on Motor Liability contracts to cover medical care at accidents +++ Poland - improved import VAT set-off scheme for established importers +++ Poland - Polish insurance chamber of commerce says 12% levy on 3rd party motor insurance to go +++ Poland - motor liability insurance is now exempt from the Fire Brigade Tax +++ Romania - Proposals being drawn up with the World Bank for new compulsory national catastrophe program +++ Romania - invoice issuing deadline has been extended to 15 days after the month of the taxable supply +++ Slovakia - adoption of the Euro brings new VAT return form +++ Slovakia - calls for increased VAT rate from the IMF +++ Spain - switch from quarterly to monthly VAT returns proposed +++ Spain - online submissions for non-residents; local bank account still required +++ Sweden - IPT now introduced at 32% of gross premiums on 3rd party liability risks +++ Sweden - group life insurance from Swedish or EU insurers is exempt from IPT +++ Switzerland - VAT rate increase to 8% in 2011 +++ Ukraine - VAT e-filling obligatory +++ United Kingdom - VAT registration threshold increased to GBP70k +++ Seychelles - introduction of VAT at 10% in 2012 +++ Jersey - call for rise in 3% VAT rate +++ Romania - imposes intra-community supply registers +++ India - GST implementation now planned for April 2011 +++ UK - wins ECJ case on restricting VAT refunds to non-EU banks and insurers +++

Insurance News Net TMF IPT Quote online tax calculation tool

Click here to read more about TMF's IPT Quote

Pulished by Insurance News Net June 2010

As governments across the world struggle to rebalance their ballooning deficits, tax authorities have been turning their attention to missed revenues from insurance premiums on global programmes. Insurers, brokers and the insured have been getting caught in the crossfire resulting from uncertainties on tax liabilities and responsibilities. The results have been expensive fines and damaged brands.

TMF has now launched a new online service, IPT Quote, which provides the world’s first online global premium tax calculation tool. Designed with London brokers and carriers, it aims to provide clarity on the entire range of premium taxes.

Tax authorities target insurance premiums

Since the landmark 2001 European Court of Justice Kaverner Case, where foreign tax liabilities were clarified on global programmes, tax authorities have been increasingly auditing levies due to them from insurers writing business abroad. Many tax offices, including Germany, Belgium, South Korea and Canada, have been singling out multinational insurers in the UK and Ireland as hubs for global programmes.

In many situations, it has been difficult for London insurers to gain clarity on their responsibilities, especially outside Europe where the rules are unclear. Lloyds has already provided an outstanding resource, Crystal, for many years which offers written guidance for brokers and Lloyds syndicates. However, for the company market and where Lloyds is not licensed, guidance is limited and does not offer details on many fiendishly complex tax calculations that leave brokers bewildered.

The risks are substantial in terms of potential penalties and reputational loss. Perhaps more importantly, the insured and their brokers are left exposed. In many jurisdictions, such as France, the tax authorities are able to seek redress from the insured or their broker.

This last point has now pressured risk managers into attempting to seek assurances from their brokers or insurers that their tax liabilities are fully addressed. Given the difficulties of establishing and tracking international premium taxes, this has not been forthcoming.

TMF IPT Quote provides transparency for brokers, insurers and the insured

To help overcome the risks from the international tax man, TMF has launched IPT Quote, the world’s first online global premium tax calculation tool. It provides brokers, insurers and risk managers simple and clear tax estimates on their insurance programmes in over 160 countries. This includes the separate tax regimes of each US, Australian and Canadian state. Insurance taxes covered include: IPT, VAT, GST, Parafiscal Charges, Stamp Duty and Withholding Taxes. This includes differentiating between admitted and not-admitted insurance, as well as clear guidance for all parties on who is responsible for paying and settling the taxes in each jurisdiction.

Richard Asquith, Managing Director of TMF VAT & IPT Services commented:

“International tax compliance for all sides involved in global programmes has been a huge headache for years. Uncertainly has led to confusion, fines and damage to the brands of many in the insurance industry. IPT Quote, built with the input of many London brokers and insurers, tackles this head on.

We are delighted with the reaction from the market, with many insurers already signed up within the first weeks of the launch.”