Blog

Insurance Premium Tax Returns: Italian IPT Books

The proper supporting documentation of a tax return has always been required by the local tax offices. In this blog we will focus on the supporting documentation of Insurance Premium Tax (IPT) returns, especially the Italian requirements. Although the requirements for the preparation of IPT supporting documentation differs from country to country, the details of […]

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IPT Compliance in the UK: What Does the Metropolitan Fire Brigade Act Mean for Insurers in Greater London?

IPT compliance is complex, especially when insurers are writing across multiple regions, jurisdictions or boroughs.

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Meet the Expert: Daniela Dinkova – Compliance Services Manager at Sovos

Meet the Expert is our series of blogs where we share more about the team behind our innovative software and managed services. As a global organisation with indirect tax experts across all regions, our dedicated team are often the first to know about new regulatory changes and latest developments on tax regimes across the world, […]

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Digitization of Reporting – Will Insurance Premium Tax Follow VAT’s Lead?

Increasingly, technology is being infused into our day to day lives to simplify and streamline activities. From home to the workplace and everything in between, digitization can help us by removing time consuming activities, while also using the power of data to provide insights. The digitization of tax In this context, revenue authorities are digitizing […]

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Understanding Aviation Hull and Aviation Liability

In Insurance Premium Tax (IPT) compliance, the Aviation Hull and Aviation Liability policy is defined under Annex 1, Classes of Non-Life Insurance, as described in DIRECTIVE 138/2009/EC (SOLVENCY II DIRECTIVE). But there are variations and identifying which class the policy is covering can be a challenge. This article will cover what insurers need to know […]

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How Insurers can Prepare for Tax Authority Audits

A tax authority audit can come in various forms, whether it be directly to the insurer itself or indirectly through a policyholder or broker. It can be targeted, for example, where an insurer has been specifically identified to be investigated due toa discrepancy on a tax return, or it can be indiscriminate in its nature […]

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The Five Pillars of IPT Compliance

For anyone relatively new or unfamiliar with insurance premium tax (IPT), an understanding of each of the core components is key to ensuring compliance. They also sit in a logical sequence of five distinct areas. Location of risk Class of business Applicable taxes and tax rates Declaration and payment Additional reporting  1.Location of risk rules […]

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Meet the Expert: Wendy Gilby – Technical Product Manager at Sovos

Meet the Expert is our series of blogs where we share more about the team behind our innovative software and managed services. As a global organisation with indirect tax experts across all regions, our dedicated team are often the first to know about new regulatory changes, ensuring you stay compliant. We spoke to Wendy Gilby, […]

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Portuguese Stamp Duty and How Reporting is Changing

The introduction of the new Portuguese Stamp Duty system has arguably been one of the most extensive changes within IPT reporting in 2021 even though the latest reporting system wasn’t accompanied by any changes to the tax rate structure. The new reporting requirements were initially scheduled to start with January 2020 returns. However this was […]

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Portugal’s Unique Fire Tax Reporting System

Treatment of fire charges is tricky in almost all jurisdictions. Fire coverage can vary from as high as 100% to 20%. No-one would dispute that the most complex fire charge treatment is in Spain. In Portugal, whilst the rules are less complex, they have a unique reporting system for how the policies covering fire must […]

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How Insurers Can Prepare for Annual Reporting Requirements

Some European tax authorities require annual insurance premium tax (IPT) reports to be submitted for the calendar year in addition to regular monthly or quarterly reporting. Annual reports usually require significant detail, making the process time consuming and labour intensive for insurers. Annual reporting requirements vary from country to country, making it complex for cross-border […]

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How to Navigate Marine Insurance IPT Treatment Across Europe

There are a variety of different approaches to Insurance Premium Tax (IPT) treatment for marine insurance across Europe. Before looking at how individual countries treat marine insurance, it is worth noting the challenges in determining the country entitled to levy IPT and any associated charges. The location of risk relating to marine vessels falls within […]

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The Complexity of Insurance Premium Tax Compliance in Spain: Your Questions Answered

We hosted a webinar about Insurance Premium Tax (IPT) in Spain. Topics covered included the Conscorcio reporting system, tips for effective and accurate compliance, the penalty regimes currently in place and the latest regulatory updates. Although our expert team answered plenty of questions they didn’t have time for everyone. Here’s a helpful summary. Is all […]

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How to Avoid Errors in Fire Brigade Charge Reporting in Spain

The Spanish tax system is one of the most complex in Europe. This can bring a real challenge to insurance companies writing business in Spain or for those that want to start writing business in the country. As explained in previous blogs, Spain has various taxes and surcharges on insurance premiums with different rates and […]

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Reflection on Insurance Premium Tax Rate Increases – What’s Next for Europe?

It’s difficult to pinpoint exactly when new taxes or tax rate increases will happen. Covid-19 has impacted almost everything, including a massive deficit in the economy. Many banks have applied negative interest and governments have put funding in place to aid recovery. It’s highly likely that tax authorities will be looking at ways to bring […]

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What’s on the Horizon for Insurance Premium Tax in Europe?

Europe has seen relatively few changes to insurance premium tax (IPT) rates recently. The most notable recent change was the 33% increase in IPT rate in Spain (up from 6% to 8%) at the beginning of 2021. Brexit became official on 1 January 2021, following the end of the transition period. This means UK based […]

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Tax Compliance for Insurers Intensifies – the Cost of Getting it Wrong

Tax authorities have increased their focus on the insurance industry to ensure Insurance Premium Tax (IPT) and parafiscal taxes are collected correctly, accurately, and on time. Operating in multiple countries inevitably means also having to comply with many local regulations in line with IPT statutory and parafiscal filing. Compliance regimes can be simple or complex, […]

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Spain: IPT Increase and Transmission Measures

The new rate for Insurance Premium Tax (IPT) was published in the Spanish Gazette (BOE) on 31 December 2020. It increases from 6% to 8%. This increased rated applies to the first tax period of 2021 (for submissions to be made the next February). In this blog, we’ll look at the challenges faced by insurers […]

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