Swedish Tax Agency Updates Guidance on VAT Exemption for Insurance Claim Settlement Services

The Swedish Tax Agency Feb. 15 updated guidance on the VAT exemption for services provided by insurance brokers or intermediaries, including claim settlement services. The updated guidance clarifies that: 1) the concept of “services ancillary to insurance transactions” is so broad that it may include various services which contribute to the carrying out of insurance transactions, including claims settlement services that constitute an essential element of those transactions; 2) the settlement of claims isn’t covered by the exemption if unrelated to the solicitation of potential customers; and 3) back-office activities such as seeking customers and connecting them with the insurer ...