VAT news tagged as "Insurance"


Doubt on outsourced insurance services VAT exemption

January 11th, 2016

The EU’s Advocate General (AG) has challenged the view that outsourced insurance claims services can enjoy the wider financial services VAT exemption. The view came from a Polish case around outsourced claims handling for accident insurance claims. The taxpayer claimed this benefited from the EU VAT Directives insurance and reinsurance exemption, and therefore it did …


Poland VAT case to test EU multimillion insurance outsourcing

April 26th, 2015

Poland has referred a tax case to the European Court of Justice that should clarify a long-standing question over the EU VAT liability of outsourced insurance services. In 2005, the ECJ ruled in the Andersen case that outsourced insurance services, including claims handling, should come with an unrecoverable VAT charge. The UK, with its multi-million …

United Kingdom

UK closes £100m banking & insurance VAT loophole in budget

March 22nd, 2015

The UK is to close a tax loophole costing almost £100m per annum relating to the recovery of VAT by banks and insurers with foreign branches. The closing of the loophole follows a European Court of Justice VAT ruling on Credit Lyonnais in 2013. Generally, banking and insurance (Financial Services) is VAT exempt. But if …


EU adds VAT on banking and insurance financial services group charges

September 17th, 2014

The European Court of Justice (ECJ) ruled on 17 September 2014 in the Skandia America Corporation vs Swedish tax authorities case that recharges of bought-in costs or provided by financial services group companies to their branches and subsidiaries in other EU countries will be liable to a VAT charge.  Until this ruling, foreign subsidiaries were …


Poland blocks financial services VAT recovery on outsourced activities

September 4th, 2014

Poland will no longer allow local subsidiaries of international financial services groups to reclaim input VAT on their Polish activities if directly linked to the parent’s VAT exempt services. A ruling by the Supreme Court this summer held that a Polish IT company which undertook outsourced administrative processes for its banking parent, from Slovakia, could …


Sweden proposes levying VAT on banking and insurance

May 26th, 2014

The first draft discussions of the Swedish 2015 budget issued last week contains a controversial proposal to withdraw the Swedish VAT exemption on financial services. Currently, all other 27 EU member states do not charge VAT on this sector. This move would challenge a proposal by other 11 other EU member states looking to introduce …


Ghana VAT on financial services delays

March 1st, 2014

Following the increase of the Ghana VAT rate to 15% from 1 January 2014, there has been uncertainty about the implementation of VAT on a range of financial services. Originally, the 2013 VAT Act plan had been to extend the VAT net to include banking and insurance.  However, this has now been delayed until 1 …