- The exemption from tax liability includes not only insurance services but also services related to insurance performed by insurance brokers and agents
- Services must be connected to insurance services and performed by insurance intermediaries to qualify for the exemption
- According to the Swedish Tax Agency, only services that specifically contribute to the execution of an insurance service are considered related
- These services could involve the signing of insurance or advice during such mediation and services occurring when an insurance risk materializes
- For a service to be considered as performed by an insurance intermediary, there must be a relationship between the service provider and both the insurer and the insured
- The service provider’s activities should include essential aspects typical of an insurance intermediary’s operations, such as finding potential clients and connecting them with insurers
- The exemption interpretation for insurance services should align with the corresponding provision in the VAT Directive
- The VAT Directive states that the exemption should also cover services related to insurance transactions performed by insurance brokers and agents
- EU Court of Justice practice indicates that exemptions in the VAT Directive should be interpreted narrowly as they deviate from the general principle that VAT should be paid for every service provided by a taxable person for compensation
Source: www4.skatteverket.se
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
