CJEU judgment on tax on insurance premium Solvency
II.
Today's attention will focus on a recent judgement of the
Court of Justice of the European Union (North of England
P&I Association Ltd. v. Bundeszentralamt für
Steuern), (C-786/19, 15 April 2021) focusing on tax levied on
insurance premia of seagoing vessels registered in one European
jurisdiction and concurrently bareboat charter registered in
another jurisdiction.
In a nutshell, based on the EU Solvency II provisions, the Court
of Justice of the European Union found that the country responsible
to tax insurance premia would be that of the underlying registry
with tangible consequences, such as this case, where such country
does not exempt seagoing vessels from such taxes.
