+++ Belgium - updated requirements on electronic invoice retention requirements +++ Belgium - the 9.25% insurance premium tax on credit insurance has been withdrawn +++ Bulgaria - Intrastat reporting thresholds increased +++ Bulgaria - New proposals being pushed with the World Bank to introduce mandatory Catastrope Fund to cover earthquakes etc. +++ Bulgaria - intra-community supplies included in calculating VAT registration threshold +++ 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 +++ Czech Republic - proposal to change VAT payment point to when cash received +++ Denmark - extension of VAT reverse charge on services from non-resident suppliers +++ 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 +++ Estonia - 2% increase in 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 +++ EU - Revised Mutual Assistance Directive issued to assist tax authorities share information on 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 +++ 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 +++ France - Confirmation of changes to ACOSS levies, which are now managed by URSSAF +++ Germany - New IPT levy on Surety and Financial Guarantee reinsurance +++ 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Duty underway; Life and Damage insurance now exempt +++ Greece - Stamp duty on Life and Damage scrapped Jan 09; will be withdrawn on all other classes Jan 10 +++ Hungary - rules on tax point (now when invoice paid) creates risks for VAT recovery +++ Hungary - standard VAT rates increased by 5% to 25% from July 2009 +++ 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 - standard rate VAT increased from 21% to 21.5% from 1st December 2008 +++ Ireland - government insurance levy on non-Life increases from 2% to 3%; new 1% levy on Life +++ Italy - New fiscal budget introduces tax increases for branches and subsidiaries of foreign insurers +++ 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 proposed to take standard rate to 23% from 2010 +++ Lithuania - VAT rate increased by 1% from 18% to 19% +++ 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% +++ Netherlands, The - drops plans for Jan 2009 1% VAT rate increase due to recession fears +++ 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 +++ Portugal - VAT rate cut from 21% to 20% from 1st July +++ 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 +++ Slovenia - VAT credits will now be refunded after three weeks instead of usual three months +++ 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 - upcoming popular vote on potential VAT increase +++ Ukraine - All VAT returns must now include information about customers and suppliers +++ Ukraine - joins World Trade Organisation and introduces many new duties +++ United Kingdom - VAT registration threshold increased to GBP67k +++ United Kingdom - Requirement to appoint fiscal representative for FOS insurance dropped +++ United Kingdom - New guidance issued on duty suspension for warehousing goods +++ United Kingdom - Arrangers of insurance contracts may now have to charge IPT even if a separate 'admin' contract is put in place +++ United Kingdom - Standard VAT rate cut from 17.5% to 15.0% until end of 2009 to help stimulate economy +++ United Kingdom - 2009 budget imposes potential personal fines on senior officers who submit incorrect IPT filings +++

TaxationWeb German Taxman probes foreign insurers' IPT

18 November 2009
Click here to read original article 18 November 2009 (pdf)

The German Federal Tax office is currently reviewing the local activities of over 500 foreign insurers. With a limited response from insurers to date, there remains open the possibility of action in conjunction with the FSA and HMRC.

The tax authorities are looking to ensure that any foreign insurers writing business in Germany are correctly applying and collecting German insurance premium taxes. It is part of a pan-European trend for tax authorities to scrutinise the activities of Freedom of Services insurers to ensure they are not missing out on any tax revenues due.

Background to the audit

In May 2009, the Federal Tax Office (BZSt) in Bonn sent the first request to over 500 foreign insurers with German passporting rights. This followed a similar extensive audit which was carried out in 2005. Insures who were contacted in 2005 are not affected by this.

In their letter, the BZSt is requesting a list of all policies with risks located in Germany and premium payments received between January 2003 and December 2008. The list of policies covering the period of 5 years should include details such as the name and address of every insured, co-insurers, premiums, tax charged, class of insurance, interception and expiry date.

The BZSt reserves the right to request certain policies after receiving the list to verify that the risk is located in Germany. The purpose of the audit is to check whether the right tax rates have been applied; they also hope to identify insurers who have not been charging premiums. In the past, some local tax offices (like Finanzamt Hanover which is in charge of registering UK insurers) have written to insurers as well, requesting them to register for IPT and Fire Brigade tax. However, this has only affected a few insurers from certain countries.

Most insurers have still not responded.

It seems that the response has been exceptionally low. This is despite three requests having been sent out.

Richard Asquith of TMF VAT & IPT Services commented: “We believe that many insurers have not received the correspondence on this as the Federal Office has been using the original contact addresses lodged with the German insurance regulator. This is often different from the current addresses of insurers, which the local State Tax offices maintain.”

Risks of fines and notification to local regulators (e.g. FSA)

Nominal fines of between Eur 250 and Eur 1,000 now apply to any insurer which has not responded in full. However, the Federal Authorities office will next be reviewing contacting foreign carriers' local insurance regulator for assistance. This obviously presents a huge reputational risk.