A large building insurer in Westphalia-Lippe wrote to all the customers who stated in their application that they were opting out and paying the sales tax. In their cover letter, they point out that the companies should adapt their contracts to the actual circumstances.
There have been isolated cases in which companies that have leased the buildings to a limited partnership under the lessor model have not received a refund of the sales tax from the tax office.
If these companies have only insured the buildings net, the sales tax of currently 19% will not apply after a fire. These companies should urgently discuss with the tax consultant whether the sums insured can remain as they are or whether the sales tax of currently 19% must be increased.
With regard to the changes in the sales tax law, according to which companies with more than €600,000 are excluded from the flat rate, every company should check whether it is still appropriately insured.
Businesses that permanently switch to opting and have the sales tax refunded could also switch the sums insured for the buildings to net, depending on the company. Depending on the insurance company, you could reduce the sums insured and thus the premium by around 20%. Businesses in the lump sum should of course also insure their buildings gross.
In the case of new applications, the building insurers usually always ask whether you make a lump sum or opt. Make sure the information here is correct.
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