Page 1


FiscalReps Newsletter April 2013 7th edition

What’s new – Premium Taxes Spain – increase in Fire Brigade Charge in Rivas Vaciamadrid

Cyprus – new Stamp Duty rates from 1 March 2013

France – insurance

One of the municipalities in Spain, Rivas Vaciamadrid, has increased the rate of Fire Brigade Charge on relevant policies with effect from 1 January 2013. The new rate of 7.50% applies to multi risk property and pure fire property policies and is in addition to the 2.50% and 5.00% rates that already apply to these lines.

In case you missed our alert in January it may be timely to remind insurers of the changes to the stamp duty rates that became effective from 1 March 2013.

From 1 July 2013 insurers writing class 10 motor liability policies will be subject to a new premium tax at the rate of 0.8% of annual premiums. Insurers will be obliged to charge and collect the tax from policyholders and remit it to the Fonds de Garantie des Assurances Obligatoires (FGAO).

We understand that FBC payments and returns in respect of Rivas Vaciamadrid should be submitted directly to the Rivas Vaciamadrid authorities, whereas the FBC payments and returns in respect of the existing charges (2.50% and 5.00%) should continue to be submitted through UNESPA.

Croatia – additional premium tax obligations for FOS insurers?

According to advice provided by UNESPA, these large increases may be open to legal challenge and affected insurers have until 30 April 2013 in which to appeal against them should they wish to do so. Please speak to your FiscalReps contact if you require assistance in relation to this issue.

Visit to see our recent alert for more details.

Croatia’s accession to the EU on 1 July 2013, while providing additional opportunities for FOS insurers, is likely to mean additional premium tax obligations. At present only domestic non-life insurers are subject to various premium taxes/parafiscal charges, including taxes on motor and motor liability lines as well as a fire brigade charge, and it is likely that such taxes will be applied to FOS insurers underwriting Croatian risks either on accession or from a later date. FiscalReps is expecting to clarify the position when we meet with the Croatian tax administration and regulatory authority later this month.





Germany – extension of IPT to offshore risks With effect from 1 January 2014 the scope of IPT in Germany will be expanded to include insured risks lying within Germany’s Exclusive Economic Zone (EEZ). The German EEZ is the area of the North Sea and Baltic Sea lying seaward of the 12 mile zone and extending maximally to 200 nautical miles from the coastline or, if nearer, to the EEZ of neighbouring states. In contrast with the current rules, next year’s change means that German IPT will apply to policies on taxable risks located within the EEZ, such as oil installations and wind farms. Therefore insurers will need to consider the impact of such additional costs for existing and future policies.

Life insurance – IPT potentially payable in 14 European states Further to February’s European Court of Justice judgment in the case of RVS Levensverzekeringen NV v Belgium (Case 243/11), life insurers may be liable to premium taxes in one or more of the following 14 countries: Austria, Belgium, Cyprus, Greece, Ireland, Italy, Liechtenstein, Malta, Poland, Portugal, Romania, Slovenia, Spain and Switzerland. The 14 countries are based on our current understanding of legislation and a closer review of the nine long-term classes of business underwritten will determine the relevant tax rates. Please contact FiscalReps if you wish to discuss the implications for your business. Visit to see our recent alert for details of the ECJ judgment. UK: 2013 Budget The 2013 Budget announcement on 20 March was largely a non-event as far as UK IPT is concerned. The only change to IPT legislation reflects the Government’s reforms to the welfare benefits system by bringing in the new Universal Credit system. As a result, Schedule 7A to the IPT legislation that provides for an IPT exemption for premiums received under insurance contracts covering motor vehicles leased by disabled persons in receipt of certain disability benefits, is to be amended to include references to the new benefits so that all eligible people can continue to claim the IPT relief. FISCALREPS IPT AND TRAINING COURSES!


Following a highly successful set of fully-booked IPT courses in 2012, further sets of industry-leading IPT training courses will be held in 2013 along with the addition of three levels of VAT training courses. Coming up... VAT Basics - 24 June 2013 VAT Intermediate - 25 June 2013 VAT Advanced - 26 June 2013 For more information visit or contact Rebecca Taylor e: t: +44 (0)20 7036 8070

What’s new – VAT EU: Common EU Standard VAT Return A report was published on 8 March 2013 by the European Commission (EC) concerning the possibility of a standard VAT return across all 27 (soon to be 28) Member States. This should reduce compliance costs for international businesses, and may be introduced only for them in the first instance as a test scenario. In some countries the amount of information required on the return will be more than currently required (VAT and net values at each rate, for example). This may create an increase in costs for businesses operating only in one country. Some Member States are concerned that the template does not include information they currently collect, and this may mean additional national returns are necessary in addition to the common VAT return which would obviously reduce the benefit. Ireland: Holding Companies Allowed in VAT Groups The European Court of Justice (ECJ) has ruled in relation to the infringement proceedings by the EC, which believed that companies not making any taxable supplies should not be allowed to be members of Irish VAT groups. The ECJ has held that this is wrong and they can continue to be members. The EC action was also taken against the UK, the Netherlands, Finland, Denmark and the Czech Republic and it is expected that the ECJ will rule similarly in these cases, maintaining the status quo. Whether countries which currently do not allow such non-taxable persons in their VAT groups will now change the domestic law to allow them is an open question. UK: Budget 2013 The UK Budget, delivered on 20 March, was short on surprises in relation to VAT. Thresholds increased with effect from 1 April 2013 for registration (£77,000 to £79,000) and deregistration (£75,000 to £77,000), and fuel scale charges will be amended from 1 May 2013.

There will be changes to the way in which fuel scale charges are amended by HMRC once the Finance Bill receives Royal Assent, and a concession affecting partly exempt businesses will be withdrawn from 1 January 2014. The concession allowed scale charges to be apportioned so as to cover only the same proportion as the input tax claim. In future, if this result is desired, an amendment to the partial exemption special method will be required to allow deduction of input tax on private fuel. The alternatives are to claim nothing or to keep detailed mileage records and fuel invoices so that only business fuel is claimed for (at the relevant percentage). UK: Insurance services


The recent First Tier Tribunal decision in the case of Westinsure Group Ltd demonstrates the importance of taking part in the “chain of intermediation” between insurer and insured, if exemption is to be applied to fees and commission. Westinsure was a broker association which was involved actively in setting up such chains, but was not involved in the negotiation of individual insurance contracts. It therefore had to charge VAT on its membership fee. The tribunal also suggested that it should be charging VAT on commissions received from insurers, although HMRC had accepted these were exempt. Further information on any of these issues may be obtained from Peter Hewitt or Nick Hammond t: +44 (0)20 7036 8070 e: / AIRMIC ANNUAL EXHIBITION 2013 - VISIT US AT STAND 79 FiscalReps will be exhibiting on 10-12 June at the Brighton Centre. If you would like to arrange a meeting please contact: Kitty Christopherson e: t: +44 (0)20 7036 8070

European Forums

FiscalReps’ Tour of European Forums - Insurance Premium Tax update In 2013, to celebrate ten years in business, FiscalReps is completing a European tour of Forums. Forums will be held in London, Dublin, Zagreb, Munich, Madrid, Milan and Paris. Our Forums will give you the opportunity to hear some of the world’s leading IPT experts talk about IPT across the EU and quiz them about your company’s IPT compliance. It will also enable attendees to bring their IPT knowledge up-to-date and equip them with the skills to manage their company’s IPT compliance. The Forums are free to attend. To register your free place at any of the forums please contact: Ruth Thompson | t: +44 (0)20 7036 8070 | e:

2 1

7 4








16th April London, United Kingdom - VAT Forum 19th April Dublin, Ireland - IPT European Forum 22nd April Zagreb, Croatia - IPT European Forum 27th June Tbc, Germany - IPT European Forum


25th July Madrid, Spain - IPT European Forum


27th September Milan, Italy - IPT European Forum


14th October Paris, France - IPT European Forum

Head office: 10 Fenchurch Avenue | London | EC3M 5BN | UK FiscalReps Registered office: 200 Fowler Avenue | Farnborough Business Park | Farnborough | Hampshire | UK FiscalReps is a trading name of Fiscal Reps Limited | Registered in England and Wales (company number 4994134) FiscalReps®, taxbox® and taxDNA® are all registered trademarks owned by Fiscal Reps Limited


t: +44 (0)20 7036 8070 | @fiscalreps