Ireland’s Insurance Premium Tax Moves Online

Hooda Greig
March 3, 2022

The global tax landscape is rapidly changing. More tax jurisdictions require electronic filings, with Ireland being the latest country to follow this trend. The Irish tax authority has announced changes to how Stamp Duty, Life Levy, Government Levy and the Compensation Fund are declared and paid from the Quarter 1 2022 submission period (i.e. 25 April 2022).

What is changing for Ireland’s Insurance Premium Tax (IPT) requirements?

From Q1 2022, businesses will be required to file all returns via the Irish online portal and pay taxes due via direct debit.

The Irish Revenue issued notification of the filing requirement changes in December 2021. The Irish Revenue has an online service with a digital pay and file facility for Stamp Duty on insurance levies which will be available via Revenue Online Services (ROS).

What happens next?

Registered insurers will have an individual ROS account. By the end of February 2022, insurers will be issued new ID numbers (TRN numbers), and the 4-digit file reference number will be discontinued. Insurers will need a TRN number to register for a ROS account to file declarations online via ROS. Payments made online are required to be via direct debit instruction.

Although many authorities still rely on paper returns, online filing and payment systems are becoming more common place.  In Europe alone, Spain, Finland, Portugal, Hungary, Italy and the UK are just a few who have adopted digital tax approaches.

More tax authorities are now adapting to online submissions to fill the gap for further transparency and accuracy in collecting taxes, causing increased challenges for insurers when ensuring premium tax compliance.

This change in Ireland is just another example in the list of tax authorities requesting additional information on a more frequent basis to increase efficiency, minimise tax gaps and boost revenue. We don’t see this trend disappearing and recommend that insurers stay abreast of the latest regulations to be prepared for more countries who will undoubtedly follow this approach. Insurers need to be aware of compliance responsibilities by keeping pace with this heightened degree of complexity, scrutiny and change. This will result in system and process changes and any digitisation will inevitably impact IT systems and budgets.

Take Action

Keeping up to date with changing tax rates, different filing formats and deadlines and understanding interpretations of local rules can be challenging especially when writing across multiple territories. If you have questions about IPT, get in touch with us and we’ll be happy to help.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

Author

Hooda Greig

Compliance Services Manager – IPT. Hooda joined Sovos in 2017 bringing experience and a background in personal and business tax consulting and compliance. She completed her studies at The Tax Institute, North West University, South Africa. Hooda’s focus is in reporting and managing compliance issues for a portfolio of IPT clients.
Share This Post

EMEA
June 16, 2022
VAT on Non-Fungible Tokens (NFTs)

The recent popularity of non-fungible tokens (NFTs) has captivated investors, governments and tax authorities. An NFT is a digital asset that represents real-world objects such as a piece of digital art, an audio clip, an online game or anything else. NFTs are purchased and sold online and are typically encoded with the same software as […]

EMEA IPT
June 15, 2022
In Focus: Why is Italy’s IPT Regime so Challenging?

Tax compliance in Italy – where do we start? From monthly tax settlements to an annual declaration, prepayment, additional reporting and treatment of negative premiums – all these factors make Italy unique and one of the most challenging jurisdictions from an insurance premium tax (IPT) compliance perspective. Let’s break it all down: Insurance taxes IPT […]

EMEA VAT & Fiscal Reporting
June 15, 2022
Reciprocity Agreements and Why They Matter When Recovering VAT

Sovos recently hosted an online webinar on VAT recovery where we covered reciprocity agreements between the UK and EU Member States when making 13th Directive VAT refund claims. One of the questions that kept coming up is what are reciprocity agreements and why do they matter? Reciprocity When making 13th Directive refund claims, each EU […]

E-Invoicing Compliance EMEA
June 14, 2022
Draft Resolution Introduces Changes to Peru’s E-transport Document

E-invoicing was introduced in Peru in 2010, following the continuous transaction controls (CTC) trend in Latin American countries for a more efficient collection of consumption taxes. Since then, the government has rolled out measures to encompass a significant number of taxpayers under the country’s mandatory e-invoicing regime and advance new technical and institutional structures within […]

E-Invoicing Compliance EMEA
June 9, 2022
Belgium Steps Closer to Mandatory E-Invoicing

In line with the obligations set by the European Directive 2014/55 on electronic invoicing in public procurement, Belgium introduced a mandate for public entities to receive and process electronic invoices in 2019. For Brussels, Flanders, and Wallonia the initiative went beyond the bare minimum of the EU Directive requirements and introduced obligations to also issue […]