Spain: CCS Reporting Requirements – a Challenging Journey

Nazaret Gonzalez
October 1, 2019

For some of us, this journey started back in 2018 when we were notified that the Consorcio de Compensacion de Seguros (CCS) was implementing a new reporting requirement.  The intention was to make insurance companies provide information at a transactional level on an ongoing monthly basis. To date, this change has had one of the biggest impacts on insurers’ reporting requirements that we have seen in the insurance industry due to the significant technological updates involved and the level of details that now need to be provided. These new reporting requirements became a reality on 1 July 2019 for any insurance company writing business in Spain.

Not only has preparing for the new reporting requirement been a challenge for insurers, it has also been a testing time for us at Sovos due to the complexities involved in the preparation and submission of the new report.

The first challenge was to find a bank that could provide the correct type of direct debits in order to register an entity under the new system. Once any registration is completed, the next step is to prepare a monthly report that contains a full set of details on a policy level including additional supplementary information such as the type of movement, e.g. cancellation, mid-term adjustment.

Without a doubt, the most common difficulty for insurers has been to identify the location of each insurance contract and allocate the relevant postcode of the risk, especially those insurers acting on a Freedom of Services basis.

There’s a useful library of frequently asked questions submitted by the market available from CCS.

The CCS has also issued guidance on the system’s specifications and the required format of the report which you can find on the same page.

The next stage is to transform your data into a specific format for uploading into the CCS reporting system. Whilst we started to develop our software back in 2018, it is still evolving based on our discussions with the CCS and the insurance market.

The system is sophisticated enough to validate data provided within hours and will provide a list of informative and invalidating errors depending on the quality of the data submitted. If errors are identified, the relevant changes must be made and resubmitted as many times as needed until the file is accepted. This could be as simple as a missing space in a policy number. And, the final challenge is to make sure your completed, and accepted, report is submitted before midnight on the 20th of each month.

Despite these challenges, this journey has helped to adapt the insurance market as it starts to feel the effects of the global digitalisation of tax that governments globally are enforcing as they seek to close tax gaps, reduce fraud and demand more granular detail.

 

Take Action

To read more about the insurance landscape and tax compliance, download Trends: Insurance Premium Tax and follow us on LinkedIn and Twitter 

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

Author

Nazaret Gonzalez

Nazaret Gonzalez AECE, Director, Client Services IPT Nazaret joined Sovos FiscalReps in 2011 having completed her Master’s Degree in Economics at Alicante University. She is a member of the Asociacion Profesional de Expertos Contables y Tributarios de España and leads the company’s Spanish IPT team. As a Director for IPT she is an integral part of the account management team at Sovos and is responsible for engaging with new and existing clients to ensure we continue to meet our clients’ needs.
Share this post

North America Tax Information Reporting
March 22, 2024
Market Conduct Annual Statement Reminders and More

On the second Wednesday of each month, Sovos experts host a 30-minute webinar, Water Cooler Wednesday, to share the latest updates on statutory filings. In March, Sarah Stubbs shared information about the many filings due after March 1, from Market Conduct Annual Statements to health supplements for P&C and life insurers writing A&H businesses and […]

North America ShipCompliant
March 21, 2024
How Producers Can Build a DtC Shipping Market

Direct-to-consumer (DtC) shipping has become one of the leading sales models for businesses of all sizes and in all markets. The idea of connecting directly with consumers is notably attractive, as it helps brands develop a personal relationship and avoid costly distribution chains. Yet, for all its popularity, DtC is often a hard concept to […]

North America ShipCompliant
March 20, 2024
Key Findings from the 2024 DtC Beer Shipping Report

This March, Sovos ShipCompliant released the fourth annual Direct-to-Consumer Beer Shipping Report in partnership with the Brewers Association. The DtC beer shipping report features exclusive insights on the regulatory state of the direct-to-consumer (DtC) channel, Brewers Association’s perspective and key data from a consumer preferences survey. Let’s take a deeper dive into some of the […]

March 20, 2024
As the World Gets Smaller, Think Bigger About Global Tax Compliance

For the past few weeks back, my colleagues and I have been talking a lot about the importance of a global strategy when it comes to addressing today’s modern tax environments. On the heels of Sovos introducing the Sovos Compliance Cloud, many in our company’s leadership team have blogged about related topics and the critical […]

North America ShipCompliant
March 12, 2024
Florida HR 583 Set to Uncork Larger Format Wine Bottles

Florida wine lovers could soon enjoy a bigger selection of bottles based on a recent bill passed by the state’s legislature (HR 583) that would remove the existing cap on wine bottle sizes. What is Florida’s HR 583 bill? Currently, Florida law prohibits the sale of wine in bottles larger than one gallon (a little […]