Netherlands: New policy statement on insurance premium tax

Changes governing the transport exemption will not take effect until 13 May 2023.

Changes governing the transport exemption will not take effect until 13 May 2023.

The new Dutch policy statement on insurance premium tax (IPT) was published on 12 May 2022, updating and superseding the IPT policy statement of 2017.

The new IPT policy statement contains a number of changes, the most notable of which are the following two aspects that concern the transport exemption:

  • “Own transport” The new policy statement distinguishes between goods transports by a contracted transport company and the “own transport” of certain goods. It remains unclear whether the insurance of “own transport” qualifies for the full or partial exemption.
  • Temporary storage Under the earlier policy statement, temporary storage qualified for the transport exemption under certain conditions. The new policy statement specifies a maximum period of three months for temporary storage; the maximum period under the earlier policy statement was one month. If goods are stored for more than three months, but it is sufficiently plausible that there is an absolutely necessary connection between the storage and the transport, the transport exemption may still apply. This continues to be subject to the condition that no additional premium is due for the storage.

The new policy statement became effective 13 May 2022, but the changes governing the transport exemption will not take effect until 13 May 2023.

The policy statement does not address the other issues that were covered in a letter that the Dutch tax authorities previously sent to several insurance sector associations, including the value added tax (VAT) and IPT treatment of intermediation and advice.

Read a May 2022 report prepared by the KPMG member firm in the Netherlands 

 

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