The Insurance Premium Tax (IPT) sphere has typically lagged behind other taxes regarding digital filing. Until recently, there were several countries based in the European Union (EU) where paper returns still had to be physically sent to the relevant tax authority. This practice remains in some cases. However, there have been some significant developments in some countries recently towards the digitization of IPT. We will take this opportunity to provide a summary.
France
IPT filings had been set to move online with effect from the January 2022 declaration submitted in February 2022, but this was postponed to January 2023 with little notice. As many insurers are already set up for online filings, we are seeking clarification from the tax authority on whether it will be possible to file online voluntarily in advance of the new deadline.
Germany
Although the capacity to make online filings of IPT and Fire Brigade Tax (FBT) has previously been available to those insurers wishing to do so, filing online became mandatory for all declarations made from 1 January 2022 onwards irrespective of the period being filed. This requirement means paper returns are no longer accepted as valid submissions and will not be considered by the tax authority.
Ireland
As previously confirmed, Ireland’s premium tax regime consisting of the Government Levy, contributions to the Insurance Compensation Fund, and Stamp Duty will be moving onto the authority’s Revenue Online Service (ROS). The first declaration for which it will be mandatory to use ROS is the Q1 2022 period, with a deadline of 25 April 2022. We understand the tax authority will consolidate these taxes into one single tax return.
Many of our clients will be aware that we are in the process of setting them up on ROS to make sure that they can compliantly file their taxes with this deadline in mind, and we are in regular contact with the relevant authority as well.
Slovenia
Many insurers received correspondence from the Slovenian tax authority towards the end of 2021 regarding the use of its eDavki portal. As things stand, the authority has confirmed that it is not mandatory to use this portal to submit IPT and FBT returns. However, it may be used to contact each insurer where necessary. Nevertheless, the circulation of this correspondence by the authority could indicate it potentially becoming mandatory for submissions in the future, especially as it is already mandatory to declare other taxes in this way. As with any foreseeable changes that may affect IPT compliance, this is something that we will be monitoring going forwards.
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