Is your VAT position adequately ensured?
For most insurers, VAT ranks as one of their top 5 cost items. This is reason enough to keep a close eye on your VAT position. But legislative developments also impact VAT. The amendments to the Financial Supervision Act (Wet op het financieel toezicht; “Wft”) and the Solvency II legislation have resulted in changes to business and revenue models. The financial crisis has also changed the public’s perception of what is fiscally and socially responsible. All these developments impact the VAT position of insurers, brokers, intermediaries, and insurance agents.
The advisors of Meijburg & Co’s Indirect Tax Financial Services group have extensive experience in not only identifying the VAT risks associated with insurance products, but also the VAT opportunities available.
Recurring issues are:
- the application of VAT exemptions to the services provided by insurers, brokers, intermediaries and agents;
- the application of VAT exemptions to the acquisition of goods and services;
- the right to recover VAT, including determining the pro rata recovery right;
- using contractual clauses and general terms and conditions as a way to cover VAT risks;
- setting up VAT efficient outsourcing procedures;
- introducing VAT control measures and setting up VAT systems and processes;
- the sale and purchase of business activities and their impact on VAT;
- intra-group transactions and their impact on VAT.
Our advisors also have extensive knowledge of insurance premium tax.
The Indirect Tax Financial Services Group is well aware of the challenges facing the insurance sector and their impact on VAT. We would be pleased to provide any assistance necessary or help you examine how these issues relate to your specific situation. If you would like more information on the VAT position of financial institutions in general, please click here to download our fact sheet ‘VAT in the financial sector’. If you would like more information on the VAT position of asset managers, custodians and brokers,please click here to download our fact sheet on ‘VAT and the insurance sector’.
If you would like to read more about our general services provided to insurance companies, please click here.