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Only risks covered by specific fiscal or parafiscal taxation are mentioned; other risks are subject to the basic regime shown in the “Other classes” heading at the end of the table. There is also a description of the tax return and payment procedures for contracts taken out by way of freedom of services (FOS) according to the provisions of the European Directives on insurance.
Whatever law applies to contracts, insurance contracts are subject to indirect taxes and parafiscal charges on insurance premiums in the State in which the risk is situated (see Art 9NL and 50L of the CEA Codification of European Insurance Directives).
Each Member State is free to determine the person responsible for collecting taxes and the method of recovery. They may require insurance undertakings, for supervisory purposes, to designate a tax representative, established on their territory, or to submit a detailed list of contracts taken out by way of FOS.
With special focus on the issue of the appointment of a fiscal representative, attention is drew to the recent European Court of justice case C-522/04, Commission vs Belgium, where the Court decided that by requiring foreign insurers who have no place of business in Belgium to obtain authorisation, before providing their services in Belgium, for a representative residing in Belgium, who must personally assume, in writing, responsibility towards the State for paying the annual tax on insurance contracts, interest and fines which may be due in respect of contracts relating to risks situated in Belgium, the Kingdom of Belgium had failed to fulfil its obligations under Articles 18 EC, 39 EC, 43 EC and 49 of the European Community Treaty.