The world of Insurance Premium Tax (IPT) is ever changing, with countries updating rates and thresholds whenever the need arises, introducing new taxes regularly and adjusting tax rates to adapt to changes within a country.
But how do you keep up with so much change when you’re already busy doing your job?
One hope is to follow parliamentary debates which is a good way to discover whether there are likely to be any changes in the coming year to IPT rates. This is a great method when new economic budgets are being published at the start of governmental tax years.
Governmental debates are also a source for knowing when new laws are due to be introduced which may have a knock-on effect on IPT.
Once parliamentary debates have been completed, amendments to published legislations will begin.
Within these legislative processes is where you can find the accurate information regarding upcoming changes. These legislations can be quite complicated and extremely detailed though, so understanding what changes mean in practical terms can be challenging, as guidance on how to remain compliant with the changes is rarely provided alongside the legislation.
Local tax authority websites
For more guidance, a country’s tax authority website can be a good resource to follow.
On these websites, tax authorities are likely to provide a general overview of what the changes are including transitional measures, new documentation, new tax returns and submission guidance.
There may also be information relating to what registrations are required – again, another useful resource to help insurers remain compliant.
One drawback to depending on these websites is that there isn’t always a requirement to publish information early, and in some cases, the tax authority may leave an update to the last minute.
Within the insurance industry there are publications that cover changes around Europe. These can help determine when and where you may need to submit IPT as well as providing a good grounding on how to remain compliant across Europe.
Many of these resources, however, are only published annually. One option is to check for regular updates from brokers and other financial institutions. These can be more frequent.
If this is starting to sound like information overload, the easiest way to keep up to date with IPT changes within Europe is to lean on the Sovos team.
Our dedicated regulatory and analysis team spend hours working through these sources each and every day, analysing new information, decoding the jargon and communicating this to our customers in easy-to-understand language.
Furthermore, by using our contacts within the tax authorities we gain early clarification, ensuring our experienced people are the first to learn about important changes.
Stop spending so much time canvassing dense documents, out-of-date websites and unhelpful resources – speak to one of our friendly team today who are always on hand to help.
After all, it’s their job to keep up with IPT changes in Europe so you don’t have to.
Speak to Sovos’ tax experts for answers to you European IPT questions.