Tax implications of sales mark-ups on group insurance policies: IPT, VAT or VAT exempt?

• Sales mark-ups are often charged on group insurance policies
• Federal Fiscal Court ruled that sales mark-ups may be subject to Insurance Premium Tax (IPT)
• Federal Ministry of Finance heavily generalized the ruling, assuming IPT liability for full sales price
• Fiscal Court Köln ruled that sales mark-up did not constitute insurance remuneration under IPT Act
• FG Köln rejected generalization of BFH ruling and emphasized the need for clarification on IPT treatment of sales mark-ups in group insurance policies

Source: kmlz.de

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.

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