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 insurers to collect the data required to ensure compliance. We explore some of the annual reporting requirements of tax authorities in Europe.
Greece annual reporting requirements
In 2019 the Greek tax authorities issued a requirement for insurance companies writing business in Greece to submit an annual premium report. The requirement was introduced retrospectively, and reports for years 2016, 2017 and 2018 had to be submitted. This requirement applies only to IPT, and each year by the end of March an annual report must be submitted for the previous calendar year.
The annual report must include the following information:
- Policy number
- Invoice number
- Insured name
- Insured Tax ID
- Class of business
- Premium amount
- IPT rate
- IPT amount
The annual report is split by quarter and the Greek tax authorities expect the data entered for each quarter to match the IPT returns previously submitted.
Italy annual reporting requirements
Another territory requiring additional reporting is Italy. Italy has many unique reporting standards and is known for its bureaucracy across the international business community.
Where Italy’s annual reporting differs is in the level of detail required. The claims, and contract and premiums reports require an in-depth list of policies and details such as inception and expiry dates, cash received dates, policyholders’ names, addresses, fiscal codes and premium values. This makes the annual reporting a significant undertaking.
Tax settlements are submitted every month alongside an annual tax declaration. In addition, the following reports are due:
Contracts and premiums report
The Italian legislation and regulations require insurance companies writing business in Italy to submit annual reports with the purpose of collecting information that facilitates the tax authorities’ control activities on taxpayers.
These reports should list all the insurance contracts in place in the relevant year with a policyholder (individual or entity) subject to Italian taxes, with the exception of policies covering Liability, Assistance and any risks written as ancillary to an underlying Liability or Assistance policy.
Claims report
Claim payments made during the previous year in favour of beneficiaries (individuals or entities) who possess an Italian fiscal code must be reported to the Italian tax authorities by the end of April.
Motor report
As an integral part of the annual IPT return due by the end of May, insurance companies writing compulsory motor third party liability are required to report the amount of IPT paid in the previous year on these policies to each of the Italian provinces.
The additional reporting in Italy requires certain elements are present prior to submission. In order to submit the contract and premium report an insurance company needs:
- Active PEC address – Italian certified email address
- Access to the SID Channel – System of transmission of data
- Legal representative – SID Channel registration is linked to the company legal representative. If the legal representative ceases to act as such, their details need to be revoked and a new application processed. This is a lengthy process that takes a few weeks, therefore planning ahead of the deadlines is of great importance.
Why planning ahead of the reporting season is vital
Many insurance companies work with third parties and the policy information they collate might not always include all required details. Incomplete and incorrect data prevents the successful submission of the annual reports and can lead to costly fines and reputational damage.
Navigating annual reporting alongside regular monthly and quarterly reporting can feel overwhelming. The more that can be prepared in advance, the smoother the reporting process. Understanding the specific annual reporting requirements of the country will ensure insurers remain compliant and avoid any unnecessary delays or corrections.
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