Denmark: Non-Life Insurance Tax - invoicing requirements
Information has been received from the Danish Tax Authority (SKAT) regarding new insurance tax reporting requirements.
Insurance policies with a risk located in Denmark will be subject to Danish insurance tax, applicable to non-life insurance classes (not including reinsurance) with some exemptions.
Lloyd’s Tax Department is currently managing an insurance tax audit with the Danish Tax Authority (SKAT). The auditor has reviewed policy information and invoices in relation to 2016 business, including how the insurance tax is calculated on the premium. The auditor noted that invoices currently do not show any information about the payer of the insurance tax which is a legal requirement in Denmark.
Effective from 1 January 2018, all invoices issued to insureds must contain the following information where Lloyd’s underwriters have received and settled the tax:
- The name of the taxpayer: Association of Underwriters known as Lloyd’s
- Lloyd’s tax identification number (Danish CVR-number): Cvr-nr 12 68 04 65
If the tax has been settled by a local Danish coverholder, it is that coverholder’s name and tax identification number which must be shown on the invoice.
For more information please consult the guidance on Crystal.