Savings from offshoring swallowed by tax hikes
Insurers that made huge savings by offshoring processes to low-cost locations outside the European Union (EU) will see these savings significantly reversed due to changes in the application of VAT
Insurers that made huge savings by offshoring processes to low-cost locations outside the European Union (EU) will see these savings significantly reversed due to changes in the application of VAT.
Richard Asquith, managing director of TMF VAT, said changes included in the EU VAT package in 2010 could lead to tax increases of more than 25% for insurers that offshored operations such as administration, call centres, claims processing and finance.
He said the changes would also impact providers
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