IPT Changes in Europe 2021: Your Questions Answered

Sovos
April 26, 2021

We hosted a webinar about the IPT regulation changes in Europe with our IPT team.

Topics included Spain’s IPT increase, Portugal Stamp Duty reporting and other IPT changes across Europe, including Germany, France, Luxembourg, Belgium and Denmark.

Although our expert team answered plenty of questions, they didn’t have time for everyone. Here’s a helpful summary.

Portugal Stamp Duty

What does NIF stand for and is there an online database where the NIF can be retrieved?

NIF stands for ‘Número de Identificação Fiscal’. This is the tax ID in Portugal. We are not aware of any online database where it can be retrieved but there is a tool to check if a NIF provided is valid: www.nif.pt

Is it correct that all premiums have to be reported for Portugal’s Stamp Duty, even the reinsurance premium?

Yes, the guidance states that all transactions, including those that are exempt (such as life and reinsurance premiums) should be reported.

What if the original period is not known for corrective returns?

If the original period is not known, it will not be possible to correct it. Consider implementing a tool that can help you search for policy numbers or tax IDs, to find out when the premium has first been reported and declared. The alternative is manually searching through the last 12 months of tax data declared (month by month), which is extremely time consuming.  

What if the risk of fire is covered but no specific premium is allocated to it (e.g. for Aviation hull risks¬)

In Portugal, for aviation risks, the ANPC contribution – 13% – is only due on the transport of dangerous goods. In that case, your only option is to identify the fire risk portion in the premium in order to apply 13% ANPC on the relevant portion of the premium. The alternative would be to apply the ANPC on the whole premium, but it might be more costly.

How can you locate a Portuguese postcode?

There is a website where you can search by postcode, street or city: www.codigo-postal.pt

Will the resubmission of a previous month’s return incur penalties in Portugal?

If the resubmission includes historical liabilities (taxes that have been missed and were not declared on time) then late payment penalties are possible. If the correction relates to an adjustment of an already declared premium, penalties should not apply as the filing will be done as follows:

    • Negative adjustment: a corrective return should be submitted, the tax amount is reduced and subject to a refund from the tax authorities and penalties should not apply
    • Positive adjustment: a corrective return does not need to be submitted, the tax amount is added to the current tax return and as it is filed on time, penalties should not apply

Germany Location of Risk

Do the new German Location of Risk rules take effect from 9 December 2020?

In Germany, if no specific date is mentioned in the act or law, it automatically becomes effective as of the 14th day following its publication in the Federal Law Gazette.

However, in this case, the last article of the law stipulates that the law will enter into force on the next day following its publication. Therefore, it will take effect from 10 December 2020 except for the amendment made to the location of risks related to Marine vessels which is taking effect retroactively from 1 January 2013.

Do you have information about the legal basis of the amended German IPT Act?

The German IPT Act has been amended by the Law on the Modernization of IPT (Gesetz zur Modernisierung des Versicherungsteuerrechts und zur Änderung dienstrechtlicher Vorschriften) published on 9 December 2020.

Do you expect the compulsory reporting in Germany and France to require more detailed information like in Portugal? For example, the requirement of Tax ID.

In Germany, the online filing that will become compulsory in 2022 already exists. Currently it’s optional and in line with the paper filing, so we do not expect additional reporting.

For France, the online filing should also be in-line with the current paper filing, but we will know for sure by the end of this year.

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Author

Sovos

Sovos is a leading global provider of software that safeguards businesses from the burden and risk of modern transactional taxes. As VAT and sales and use tax go digital, businesses face increased risks, costs and complexity. The Sovos Intelligent Compliance Cloud is the first complete solution for modern tax, giving businesses a global solution for tax determination, e-invoicing compliance and tax reporting. Sovos supports more than 7,000 customers, including half of the Fortune 500, and integrates with a wide variety of business applications. The company has offices throughout North America, Latin America and Europe. Sovos is owned by London-based Hg. For more information visit www.sovos.com and follow us on LinkedIn and Twitter.
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