Draft directive promises greater legal certainty on VAT exemptions

Current legislation, dating back to 1977, exempts insurers and other financial institutions from VAT • Generali acquires Cestar

Proposals put forward by the European Commission will make it easier for insurance companies and banks to opt into charging value added tax (VAT) for their services. The aim of the measure is to reduce these institutions’ exposure to a non-recoverable tax. The proposals are included in a draft directive intended to modernise and simplify VAT rules for the financial services sector.