Change in overseas premium tax (Freedom of Services) processing
Risks within the European Economic Area (EEA) can be subject to Freedom of Service (FoS) taxes. From 13 October 2018 we’ll no longer be requesting for this to be settled by a separate cheque payment.
From that date, FoS taxes will be processed alongside the associated policy premiums, through our policy administration systems to use the same collections and settlement mechanisms you use with us.
We will change our way of processing all policy transactions with FoS taxes from 13 October 2018, irrespective of the policy transaction type. It is important to emphasise this date relates to the day we process the transaction into our systems and is not related to dates on a policy.
What does this mean for you?
If you currently receive requests from us to settle FoS taxes by sending in a separate cheque this is what is changing: this will cease, but subject to the transition note below. This means that in future you can include FoS taxes in your main settlement with us.
Is there a period of transition from the old method to the new method?
As we phase out the old process we would ask that if you have been asked to send a separate payment that you do so. This will allow us to close off the old way of working cleanly. For example, we may have processed the policy transaction on 8 October 2018. The new capability does not yet exist, hence why we will still need you to honour the old process and send in a cheque, so you may still receive these requests for a short period of time after 13 October.
If you have any questions about these changes, please get in touch with your usual underwriting contact or your Aviva Broker Collections credit controller.
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