Global VAT updates relating to Covid-19
As businesses begin to realise the impact that the fight against the Coronavirus will have, tax authorities have begun to communicate simplification and deferment measures to help affected businesses. At Taxback International, we are continuing to monitor this situation and will provide updates as they are released.
The European Union
EU Commission has recommended countries provide VAT payment holidays under the current Covid-19 threat
The European Commission has decided to postpone the entry into force of EU taxation measures to take account of the difficulties that businesses and Member States are facing at the moment with the Coronavirus Crisis. The Commission has proposed to postpone the entry into application of the VAT e-commerce package by 6 months. These rules will apply as of 1 July 2021 instead of 1 January 2021, giving Member States and businesses more time to prepare for the new VAT e-commerce rules.
- The European Commission waves customs duties and VAT on the import of medical equipment from third countries (temporarily)
- EU Commission decided to postpone the VAT e-commerce package by 6 months. These rules will apply as of 1 July 2021 instead of 1 January 2021, giving Member States and businesses more time to prepare for the new VAT e-commerce
Austria has announced a VAT payment & penalty deferment application scheme for companies directly affected by the virus.
Monthly VAT returns normally have to be filed by the 15th of the second following month. Individual extensions for monthly VAT returns can be granted by the tax office upon reasoned request. Also, general extensions of the deadline can be granted by regulation of the BMF. The BMF has also promised an unbureaucratic extension of the deadline for submitting monthly VAT returns if taxpayers are affected.
This regulation also applies to the collection of excise duties (which includes VAT) and the legacy contribution. Applications for deferral and payment in instalments are processed immediately by the customs offices. If the taxpayer is specifically affected, deferral interest and default surcharges will be reduced to an amount of up to zero euros or not set. There are no special forms for VAT purposes, which means an e-mail that to be sent to firstname.lastname@example.org, where you can apply for a deferral without interest if you can explain the situation is related to covid19 source.
Deferral of VAT payments or instalment payments are possible (2a) Entrepreneurs, on which the requirements for the size characteristics of § 45 Abs. 6 EstG or § 24 para. 8 KStG, have a monthly period for the months March to September 2020, or for quarterly period for the second and third calendar quarter of 2020, no advance payment.
Due date for this payments are the time of the annual assessment. The obligation to submit the VAT returns remains unaffected. Application for waiver of interest thereon is possible. For the period in which measures to prevent the spread of COVID19 are in place, there is no official deferral interest in accordance with Section 212 (2). Suspension interest in accordance with section 212a (9), claim interest in accordance with section 205 (2) BAO or to set appeal interest in accordance with § 205a BAO.
- No postponement possible of submitting advance VAT returns in due time
- An extension of the deadline can be applied for in such cases in accordance with § 134 para. 2 BAO, without the threat of consequences under fiscal criminal law.
- It is possible to apply for interest-free deferral of duties or their payment in instalments, provided that the Corona crisis has been shown to have a concrete impact. Deferral interest (3.88 % pa) and default surcharges (2 %) can then be reduced to 0.00 %.
- The deadline for submitting the annual VAT return for 2019 has been extended to 31 August 2020.
Similar measures have also been introduced in numerous other EU member states.
- VAT deduction on non-alcoholic beverages in taverns to 10 percent until the end of 2020
- Temporary 0% VAT for the delivery and purchase of protective masks (retrospectively) decided between April 14 and July 31, 2020.
- Interest for declarations not submitted on time, will not be automatically imposed until August 31, 2020
- Deferral and payment in instalments: The taxpayer can apply to postpone the date of payment of tax or to pay it in instalments.
- Deferred interest: The taxpayer can suggest (for example, in the application for deferral or payment in instalments) to refrain from setting the deferred interest.
- Penalty Surcharges: The taxpayer can apply to reduce or eliminate a penalty.
- No postponement possible of submitting advance VAT returns in due time
- Austria announced an extension of the reduced 5% VAT rate in the hospitality, cultural and hotel industries until 31 December 2021.
- There will also be an extension of existing tax payment deferrals with no interest charges or penalties until 31 March 2021.
Companies in difficulty may request VAT payment delay. Measures in place until 30th June
Postponement of filing of VAT returns
Periodic VAT returns
- Return for February 2020, the normal deadline being 20 March 2020: deadline extended until 6 April 2020.
- Return for March 2020, the normal deadline being 20 April 2020: deadline extended until 7 May 2020.
- Return for the first quarter of 2020, the normal deadline is 20 April 2020: deadline extended until 7 May 2020
Starting companies qualifying for a monthly refund or holders of a licence for a monthly refund are also granted a delayed deadline, but only until the 24th of the month following the filing period.
EU sales listing
- Statement for February 2020, normal deadline is 20 March 2020: deadline extended until 6 April 2020.
- Statement for March 2020, normal deadline is 20 April 2020: deadline extended until 7 May 2020.
- Statement for the first quarter of 2020, normal deadline is 20 April 2020: deadline extended until 7 May 2020
Annual customer listing
The normal deadline is 31 March 2020: the deadline has been extended until 30 April 2020. If the taxpayer has ceased its activities: at the latest, at the end of the fourth month following the cessation of its activities subject to VAT.
Payment of VAT:
An automatic deferral of payment of 2 months for VAT without having to pay fines or interest applies. This deferral will apply to:
- VAT payment for monthly return – February 2020, normal deadline being 20 March 2020: deadline extended until 20 May 2020;
- VAT payment for monthly return – March 2020, normal deadline 20 being April 2020: deadline extended until 20 June 2020; and
- VAT payment for monthly return – first quarter of 2020, normal deadline being 20 April 2020: deadline extended until 20 June 2020.
- In addition to this automatic deferral of payment, taxpayers can also apply for instalment payments of the debts relating to VAT.
Upon request, payment plan, waiver of late payment interest and waiver of penalties for non-payment is available (conditions need to be met) https://finances.belgium.be/fr/coronavirus.
All applicants for monthly VAT returns (even those who do not have a monthly refund authorisation and those who are not considered to be a “starter”) will be able to benefit from a refund, subject to the conditions set out below. VAT credit on their current account (effective date: March 31, For all monthly depositors who wish to benefit from this accelerated reimbursement (starters, holders of a monthly reimbursement authorisation and all the others), the filing deadline for the declaration of February 2020 is fixed at April 3, 2020. Reimbursement will only take place if the “Request for restitution” box has been checked – minimum amount of 245 euros.
All declarations relating to the current year must have been submitted. The administration must have a bank account number for VAT refunds. There should also be no opposition to this refund. Thanks to this measure, restitution will take place no later than April 30, 2020 instead of restitution on May 29, 2020, or even no later than June 30, 2020. This credit may be subject to deduction or charge against another open debt and subject to a “VAT credit check”.
Warning – This filing deadline does not affect the possibility of filing on time (until April 6, 2020 inclusive) the monthly statements for February 2020 that do not have a credit balance or for which a refund is not requested.
- Automatic postponement is provided for submitting
- the periodic VAT returns
- the intra-Community declarations
- the annual customer list
- Deferral of payment of VAT.
Both deferral measures are granted automatically, so that no special conditions or formalities have to be met. Belgium extended the standard VAT return deadline from 20 April to 7 May due to COVID-19.
- 6% Vat on delivery, intra community acquisition and import between May 4th 2020 to 31st December 2020 of protective equipment
- Deferral measures are granted automatically, so that no special conditions or formalities have to be met.
- VAT payment and filing automatic delay scheme, if difficulties are experienced due to Covid-19 until 05 June 2020, and the payment of VAT due is extended to 20 July 2020
- Companies donating medical material and equipment to hospitals and computers will not have to pay VAT on these donations.
- VAT rate on catering, restaurant and cafe services to be reduced to 6% – implemented on 8th Jun 2020.
The June 2020 and July 2020 VAT returns and Intrastat filing deadlines are delayed by 20 days to 10 August 2020 and 10 September respectively.
The deadline for payments remains unchanged.
The Tax Authorities have announced the below:
- Reception costs (for open days or other events for customers) are 100% deductible until December 31, 2020;
- Taxpayers are not required to pay the December advance in December 2020. The VAT due for the last period of the year 2020 (Q4 2020 or December 2020) will have to be paid in full by 20 January 2021
No official update from Tax Authorities
There is currently no extension of the deadlines for filing of tax returns or other returns. The deadline for declaration and payment of value-added tax will not be changed.
- Proposed temporarily Vat reduction for restaurants and places of entertainment from 20% to 9% until of the beginning of 2021. Also on books to 9% which should be permanent.
- There is a VAT reduction on services provided by restaurants or catering companies, including food delivery, books, baby foods, baby diapers and similar hygiene products for babies from the standard 20% to 9%.
- The measure will apply from 1 July 2020 to 31 December 2021, and VAT reduction on tour operators’ services, beer and wine provided as a part of restaurant/catering services and the use of certain sports facilities to 9 % for the period from 1 August 2020 to 31 December 2021.
No official update from Tax Authorities
The Croatian government on 17 March 2020 proposed certain tax relief measures to mitigate the effects caused by the coronavirus (COVID-19) epidemic. The proposed amendments are pending parliamentary consideration, but it is not expected that the proposed amendments would be substantially changed during this process.
There is currently no extension of the deadlines for filing of tax returns or other returns.
The measures refer to the deferment of public contributions, specifically to the deferment of paying income and profit tax and contributions on wages for a period of three months and possibly an extra three months of grace period if necessary and after that these payments can be made in instalments of up to 24 months. Nothing mentioned about VAT payment or filing.
An additional package includes new rules for the deferral of VAT payments. This includes a three-month deferral of VAT payment for VAT liabilities reported in VAT returns due 30 April 2020 (March return and Q1 return) and 31 May 2020 (April return). The deferral must be requested and is subject to certain conditions, including:
- There is a decrease in income/receipts of at least 20% for the relevant month as compared to the same month in the previous year; or
- It is likely that there will be a decrease in income/receipts of at least 20% in the next three months as compared to the same period in the previous year for the relevant month as compared to the same month in the previous year.
The HRK 7.5 million revenue limit for obtaining VAT payment deferral under the previous relief measures announced in March no longer applies.
- Imports of goods needed to combat Covid 19 are exempt from import duties and VAT from 1st of Jan. 2020 to 31st of Jul.2020
- Donations made to help with COVID 19, will not be subject to VAT from April to June 2020
Plans are in place to temporarily reduce VAT rates from 19% to 17% until May 2020 and an extension granted on VAT payments to provide cash flow relief to businesses
The Ministry of Finance announces that the following have been approved under the Coronavio Impact Support Program:
Bill providing for a temporary suspension until the end of April 2020 of the obligation to file a tax return and pay VAT, provided that the taxable person pays the tax due until 10 November 2020, when the total outflows in the last 12 months precede at the end of the specified tax period, have not exceeded one million euro.
Bill providing for a reduction of the basic VAT rate from 19% to 17% over a two-month period from 1 April 2020 to 31 May 2020, as well as a reduced VAT rate, which is reduced from 9% to 7% for a period of three and a half months, from 1 April 2020 to 15 July 2020.
Temporary suspension for two months of the obligation to pay VAT on business liquidity. It relates to companies whose turnover was not more than € 1m according to tax declarations submitted in 2019 and companies whose turnover was reduced by more than 25%, without imposing any charges. It is noted that arrangements will be made so that the debts will be paid progressively until November 11, 2020.
The newly enacted measures refer to amendments to articles 45 and 46A of the Cyprus VAT Law 95(I)/2000 as amended, which refer to Infringements and Tax offences respectively. No penalties and interest will be imposed for the late payment of any VAT due for the following three VAT quarters ending on the 29th of February 2020, the 31st of March 2020 and the 30th of April 2020, provided that:
- The relevant VAT Return is submitted on time (40 days after the end of the relevant quarter) and
- Any VAT payable is paid by the 10th of November 2020. It is clarified that the late submission of the aforementioned VAT Returns will entail the imposition of the relevant penalty.
- The late payment of VAT will not constitute a tax offence according to the Law, if the VAT payable is paid by the 10th of November 2020.
It should be noted that the application of both aforementioned amendments does not apply to certain categories of businesses.
Finally, it is imperative to mention that the newly enacted law does not make any reference to the previously announced conditions for benefiting for the deferral of the VAT payment based on turnover limits, neither to VAT rate reductions which mainly aim at boosting consumption which during the pandemic period is not a main concern.
- Change of the duration of the VAT returns;
- Change of the deadline for submission of the relevant VAT returns to the 27th day following the end of each reporting period;
- Partial VAT has payment for some businesses, by enabling them to only discharge 30% of the total VAT due as at the date of submission of each VAT return (i.e. 30% of the VAT due as per the current VAT return + 30% of the VAT due referring to previous VAT returns).
- Standard rate from 19% to 17% for a period of two months, Reduced rate: from 9% to 7% for a period of 3,5 months.
- No penalty and interest for late VAT payment relating to Vat return periods ending February, March and end of April 2020, Vat returns have to filled on time
- Related payable tax is discharged until 10th November 2020. Taxable persons whose activity codes are 35111, 36001, 47111, 47112, 47191, 47211, 47221, 47221, 47231, 47241, 47242, 47301, 47411, 47611, 47621, 47651, 47731, 61101, 61301, 61901 are excluded from the concession.
- amendment of VAT periods from quarterly to monthly, starting from 30 March 2020 until 30 June 2020, obligation to submit monthly VAT returns by the 27th day following the end of the relative month and make payments within the same deadline.
- Exemption of import duties and VAT on imports needed to combat COVID-19
Announcement of a Waiver of sanction for late submission of VAT returns and sanction for non-submission of control statements in all cases where the VAT payer individually requests the waiver and proves the reasons in any way related to coronavirus. Typically, this may be an illness or quarantine of accountants or other key employees whose absence makes it impossible to fulfil VAT obligations; The Ministry of Finance has not an extended deadline for submission of the VAT reports or for payment of VAT liability as yet.
Businesses will be offered tax payment delays; but this is not automatic. Practically the amendment allows for a five-day delay in filings without late charges being charged. Although any fines of CSK1,000 will be waived – the previous threshold was CSK 200. There will be speedy refunds of VAT credits. The requirement to submit VAT returns prior to any audits will be dropped. The Ministry of Finance has not an extended deadline for submission of the VAT reports or payment of VAT liability as such
Can I apply for an extension of the deadline for filing a VAT return and a control report (KH)?
Pursuant to Section 136 (4) of the Tax Code and Section 101 (2) of the VAT Act, the deadline for filing a VAT return (DAP VAT) cannot be extended.
Pursuant to Section 101e (3) of the VAT Act, the deadlines for filing a CF / AF can not be extended.
If I submit a VAT return late, what sanctions do I face?
In connection with the Minister of Finance’s decision to waive the tax accessories and the administrative fee due to an extraordinary event (ref. MF-7108/2020 / 3901-2) – general pardon (FZ no. 4/2020), the fine for late filing is waived DAP VAT, if the taxpayer was waived late interest on the basis of an individual application filed pursuant to Section 259b of the Tax Code or on the basis of an individual application filed pursuant to Section 156 of the Code of Taxation -2 (coronavirus).
Suspension of obligations from electronic records of sales during the state of emergency and in three subsequent months has been announced.
Automatic removal of the penalty for late filing of real estate acquisition tax return and related late payment sanctions if the tax return is filed before 31 August 2020.
If you pay overdue VAT, you will be required to pay interest for each day, from the fifth business day following the due date until the day of payment is included. If you know that you will not be able to pay VAT at the moment, you can ask your local tax administrator to authorise postponement of the VAT payment or the distribution of its payment in instalments according to § 156 of the Tax Code.
The application for a posting has no standard form, it is a general submission. For the duration of the mowing, there is no interest on late payment but only interest on the mowed amount. The same applies to instalments. The tax administrator may then waive all or part of the interest accrued. However, you are entitled to ask the tax administrator to waive the interest only after the payment of the tax that resulted in the interest not being paid.
For information on remission of late interest and interest on the amount retained in connection with the spread of Covid 19, please refer Czech Guidelines https://www.financnisprava.cz/
Adoption of so-called Liberation packages.
Liberation Package II – excuse of the June advance on personal and corporate income tax, state will not impose fines for late submission of real estate property tax return, introduction of Loss carry back and suspension of the obligation to electronically record sales for entities in all phases of EET (during state of emergency and following three months). Liberation packages have been extended. Road tax advances due in April and July can be paid until 15 October and proposal for VAT exemption from goods that are supplied free of charge (e.g. covid-19 test kits, protective clothing, other medical supplies, etc.).
- Vat rate for beer to 10%, VAT rate will be applied to draft beer consumed in a restaurant. The basic 21% VAT rate will continue to be applied to packaged beer and draft beer consumed outside of restaurants.
- VAT filing and payment delay on application
- Automatic wave for fine of late submission of Control report between March and July 2020
- The Ministry of Finance introduced a special Act No. 137/2020 Coll., on certain adjustments in the field of registration of sales in connection with the state of emergency, which stops the requirement to keep registration of sales (EET) during the state of emergency and succeeding three months. During this time, no taxpayer is required to keep registration of sales and this obligation would not be examined by the authorities.
- Donation of masks and sanitizers is exempted from VAT. Donation of any products to the hospitals, social institution, firemen, policy and army is exempted from VAT
Postponement by 1 month for VAT payments by companies with a turnover above 50 million DKK. Applicable for 3 months starting March 2020 which now will have a revised deadline of 25th May
The Danish government announced on 17/03/2020: The payment deadline for companies that pay VAT monthly is postponed by 30 days for 3 months (March, April and May 2020). That is, the deadline of 27 April 2020 is postponed to 25 May 2020, the deadline of 25 May 2020 is postponed to 25 June 2020 and the deadline of 25 June 2020 is postponed to 27 July 2020.
For companies that pay VAT on a quarterly basis, the first and second quarters of 2020 are merged, so that the second quarter’s reporting and payment deadline becomes 1 September 2020. For companies that pay VAT on a semi-annual basis, the first and second half of the year are combined so that: The second half-year reporting and payment deadline will be March 1, 2021.
Finally, companies will have the opportunity to have up to DKK 10 million. DKK on the Tax Account for a temporary period if the companies on March 25, 2020 or later adjust the amount limit.
This page (skat.dk/corona) is constantly updated.
For small and medium-sized businesses, the tax periods for the first and second quarters and the first and second half years must be added together. This removes the payment deadline for medium-sized companies for the first quarter of 2020 with 3 months, and small businesses for the first half of 2020 with 6 months.
How are the VAT reporting and payment deadline changed for large companies?
- The deadline of April 27 will be moved to May 25,
- The deadline of 25 May will be moved to 25 June,
- The deadline of 25 June will be moved to 27 July.
Does the postponement of the payment deadline also apply to me?
You have to pay VAT at the same time limits as you normally would.
Do I still have to report when the payment deadline is postponed?
You can still report to the original deadline. It is an advantage for your business if you have to have VAT back. However, you must report and pay no later than the deferred deadline. You must report for each period on its own reporting to the new deadline, even if the periods are added together.
As part of the Danish Tax package, businesses that settle VAT monthly, have received a 30-day extension of the deadline to pay the VAT whereas business settling VAT on a quarterly basis, the payment for the first two quarters of 2020 can be combined and made by the 1st September 2020. Any businesses on a bi-annual frequency can pay the VAT for both half-yearly periods in a combined payment to be made only by the 1st of March 2021. https://skat.dk/skat.aspx?oid=16900&lang=us
Deferred VAT half-year due to coronavirus: The deadline 1 September 2020 is moved to 1 March 2021 (settlement period: 1 January – 30 June 2020); The deadline 1 March 2021 remains 1 March 2021 (settlement period: 1 July – 31 December 2020), You must report for each period on its own reporting to the new deadline, even if the periods are added together.
Deferred VAT quarterly due to coronavirus: The deadline of 2 June 2020 is moved to 1 September 2020 (settlement period: 1 January – 31 March 2020), The deadline of 1 September 2020 remains 1 September 2020 (settlement period: 1 April – 30 June 2020), You must report for each period on its own reporting to the new deadline, even if the periods are added together.
Deferred VAT Monthly Due to Coronavirus: The deadline 27 April 2020 is moved to 25 May 2020 (settlement period: 1 March – 31 March 2020), The deadline 25 May 2020 is moved to 25 June 2020 (settlement period: 1 April – 30 April 2020), The deadline 25 June 2020 is moved to 27 July 2020 (settlement period: 1 May – 31 May 2020), The Tax Agency encourages you to report by the original deadline and only wait to pay.
Companies liable for VAT with an annual revenue of less than DKK 5 million, that paid VAT for the second half of 2019 at 2 March 2020 and VAT-liable companies with an annual revenue between DKK 5 million and DKK 50 million that paid for Q4 2019 at 2 March 2020 may be refunded their VAT payment as an interest-free loan.
Denmark delays VAT reporting and payments for coronavirus
- Small tax payers may request refund of VAT paid on 2 March 2020 deadline for 2019 VAT periods may now apply for an interest-free loan of the VAT paid
- Quarterly VAT payers may opt to consolidate their Q1 and Q2 returns, and file and remit any VAT by 1 September 2020
- Postponed deadline for Vat Reporting and payment: 30 days for monthly return, Q1 and Q2 added together for quarterly returns but reported separately, first and second half added together for bi annual return but reported separately.
- EU sales without VAT not postponed
- Reporting and payment of One Stop sales tax not postponed
- The Tax Agency encourages you to report by the original deadline and only wait to pay.
No official update from Tax Authorities
The government announced on 18/03/2020: In order to alleviate the financial situation of companies, the Tax and Customs Board (MTA) will suspend the calculation of interest on corporate tax debt for emergency situations, the interest relief will be retroactive from 1 March to 1 May. However, all declarations must be filed in due time and, wherever possible, taxes must be paid.
Minister of Finance Martin Helme stressed that interest relief does not mean tax exemption. “We understand that this is a difficult time for everyone, but it is important for everyone to be able to pay their taxes in order to keep the country functioning. In the current situation, it is more important than ever, ”he added.
“Interest relief is the fastest and easiest-to-implement short-term measure to support distressed businesses and provide confidence – if the state is in trouble with taxes right now, the state will take that understanding. We must not forget, however, that tax liability will still arise, ”said Helme. “In order to provide additional support for businesses, there is also a broader support package that the government will come out within the coming days.”
Businesses must continue to submit correct declarations in a timely manner, such as a VAT return deadline of Friday, March 20. Otherwise, the state will not be able to get an overview of the situation of our companies and make the right decisions. Businesses in difficulty have to pay off their tax debt in the MTA’s e-environment. The MTA is as flexible as possible in the debt procedure, nor is debt enforcement enforced in an emergency.
What should I do if I have difficulties in paying taxes due to an emergency situation/crisis?
First of all, it should be noted that if it is possible to pay the tax within a month, there is no need to apply for the payment of tax arrears in instalments. Estonia has stated they are not going to start the recovery of tax arrears incurred during the emergency situation. If you want to participate in a public procurement procedure or apply for grants or permits from the state or a local authority, you should certainly consider applying for the payment of tax arrears in instalments. The same applies to the situation where it is evident that your troubles are going to last longer. However, all tax returns must be submitted correctly and on time so that the state can assess the real situation of businesses and make the right decisions to help them.
During the emergency situation period (from 1 March to 1 May 2020), the ETCB does not calculate interest on tax arrears. There is no concrete info in relation to VAT no additional news, for further information use e-mail email@example.com.
Estonian Tax and Customs Board (ETCB) suspends the calculation of interests on their tax arrears for the period of emergency with retroactive effect as from 1 March to 1 May. Businesses have to continue filing accurate tax returns by the due date, e.g. VAT returns.. Otherwise, the State will not be able to get an overview of the situation of our businesses and take the right decisions. Companies in difficulties need to apply for the payment of tax arrears in instalments through the ETCB’s e-service environment. The ETCB is as flexible as possible in debt proceedings and will not initiate compulsory execution in an emergency.
- VAT rate change for e-books from 20% to 9% as of 1st May 2020
- Suspension of the obligation to pay interest on outstanding tax debts from 12 March 2020 until the end of the state of emergency;
- Reduction of interest rate for outstanding tax debts from 0.06% to 0.03% per day from the end of the state of emergency until 31 December 2021;
- All tax returns must be submitted correctly and in a timely manner.
- The Estonian Tax and Customs Board decided to suspend the calculation of interest on corporate tax debts during the current emergency situation. Interest relief is applies retroactively from 1 March 2020 to 1 May 2020 in Estonia. Companies which have difficulties at the moment, have to contact and reschedule the payment, the Tax authority will also show flexibility on collecting VAT debts.
- VAT Exemption for Protective Equipment, Medical Devices for Covid 19
Tax authorities have announced they will waive VAT payment penalties from 15th march. Companies can apply for payment holidays but returns must still be filed on time. You can apply for a payment arrangement in case of temporary payment difficulties with MyVero or call 029 497 028 (Payment arrangements).
There is no possibility to apply for an extension for the filing of the VAT return, however in case a VAT or corporate income tax return is filed late, companies can request that the Finnish Tax Authorities not collect the late filing penalty.
Possible reliefs related to payment arrangements are under discussion and the Finnish Tax Authorities will release more information in due course
In this exceptional situation, the tax administration will support businesses by stepping up the handling of the above issues. VAT refund processing will also be stepped up. There has been no change in the tax filing deadlines. It is advisable to submit notifications normally within the deadline unless the company has special reasons for not reporting. This is how we can focus our tax administration on helping companies that have difficulty reporting or paying taxes due to the corona situation. A late fee for reporting may be waved if reporting is prevented due to illness. Due to the exceptional situation caused by the coronavirus, the Tax Administration will ease the terms of the payment arrangement for the time being. In addition, the Ministry of Finance is preparing an amendment to the Act on the temporary reduction of default interest on taxes included in a payment arrangement. If it belongs to direct and indirect taxes is not stated yet.
Finland is expected to provide a range of VAT reliefs. The Finnish tax authorities cannot grant more time for filing VAT returns or other tax returns for self-assessed taxes. However, taxpayers can request that the late-filing penalty is removed. If taxpayers have a justified reason for filing late, such as illness, you may not have to pay a late filing penalty.
You can apply for a payment arrangement for temporary payment difficulties. Due to the exceptional situation caused by COVID 19, the Tax Administration will facilitate the terms of the payment arrangement for the time being. Interest on late payment may be waived for a specific reason, for example, if the illness has prevented payment on the due date.
The Tax Administration has also announced that, due to the COVID-19 situation, medical devices imported from outside the EU are exempt from customs duties and VAT.
- The Tax Administration will start processing requests for payment arrangements as soon as possible after the amendment on the lowered interest rate has entered into force. According to current information, the legislation will enter into force in June. We estimate that the processing time will be 1-2 weeks after the new legislation has entered into force
- The Tax Administration pays refunds for self-assessed taxes (for example negative VAT) immediately after processing if the taxpayer has not selected a different refund time or set a limit and there are no other factors to prevent the refunding.
- No late filing penalty on VAT returns and no late payment charges on VAT settlements
- The Tax Administration pays refunds for self-assessed taxes (for example negative VAT) immediately after processing if the taxpayer has not selected a different refund time or set a limit and there are no other factors to prevent the refunding.
- Legislation proposed to refund VAT that companies have paid during 2020 upon request. This VAT refund would be a loan that would have to be paid back within two years.
- The Finish authorities cannot grant more time for filing VAT returns. However, if you have a justified reason for not filing the tax return on the due date, such as illness or quarantine, you may not have to pay a late-filing penalty. In these cases, contact the Tax Administration on the return’s due date (general due date on the 12th of the month) or immediately after.
Tax relief measures have been announced to allow all companies to defer without justification, formalities or penalties, the payment of taxes due in March 2020. Tax relief announcement does not indicate that a formal request is required from taxpayers but prudent taxpayers should consider informing the Tax Authorities by email or by an online message on the portal impots.gouv.fr
The government has been silent on the first announcements to support companies about the extent of the taxes affected by these measures, a press release from URSSAF and the DGFiP now clearly indicates that the deadlines for payments to companies only concern direct taxes
There are no specific VAT measures approved in France. The Government only affirmed the objective of a rapid refund of excess input VAT to the companies (i.e., within 1 month in 80% of cases).
French Tax office information for foreign companies regarding Covid19:
It is recalled that only direct taxes can be subject to deferral of payment or possibly remission. Also, no payment deferral or remission of VAT rights can be granted to companies. Perform most of your procedures and ask your questions from your secure messaging service or by email . Thank you for being patient and for not renewing your requests, longer delays are necessary to process them.
France postpones implementation of EU definition of exporter to 1 October 2020. Reduced VAT rate of 5.5% for masks from 20 to 5.5% until 2022.
The French Tax Office has confirmed the 13th Directive June VAT deadline has now been extended from June 30 2020 to September 30 2020. The change is as a direct result of the COVID-19 pandemic. This update applies to 2019 VAT refunds for non-EU businesses without VAT-liable operations in France. Read more here.
- Reduced VAT rate of 5.5% is now applicable to intra-Community deliveries and acquisitions of certain protective equipment and personal hygiene products The reduced rate of VAT will be applicable until December 31, 2021.
- French Vat credit from 2020 under EUR 500,00 will be rapidly refunded upon request
- The requests for deferral only concern direct taxes and social security contributions, the payment of indirect taxation (VAT, excise duties, etc.) is therefore due to the scheduled deadlines, without any delay.
- Tax audit’s procedural timelines are extended by a period corresponding to the time lapse between 12 March 2020 and the end of the health emergency, plus one month.
- Some companies unable to get all required the information to file their VAT returns for March and April 2020 on time, are authorised to assess the VAT due on a flat-rate basis (based on the VAT amount paid the previous month).
Enforcement measures and late-payment penalties will be waived for companies directly affected by the coronavirus until 31st Dec
The German Federal Ministry of Finance and the German Federal Ministry for Economic Affairs and Energy announced 18.03.2020: To improve the companies’ liquidity situation, options for deferring tax payments and reducing prepayments will be implemented:
- Revenue authorities will be able to defer taxes if their collection would lead to significant hardship. The revenue authorities will be instructed to not impose strict conditions in this respect.
- As soon as it becomes clear that a taxpayer’s income in the current year is expected to be lower than in the previous year, tax prepayments shall be reduced in a swift and straightforward manner.
- Enforcement measures (g. garnishment of bank accounts) and late-payment penalties will be waived until 31 December 2020 if debtor of pending tax payments is directly affected by coronavirus implications.
VAT not mentioned separately.
Deferral of tax payments: If companies are unable to make tax payments due this year due to the economic consequences of the corona pandemic, these payments are to be deferred on request and generally free of interest. Companies can apply to their tax office until December 31, 2020. There are no strict requirements for granting the deferral. Businesses must demonstrate that they are directly affected. However, they do not have to provide detailed evidence of the value of the damage incurred. This supports the taxpayers’ liquidity by postponing the timing of the tax payment. This measure affects income and corporate tax as well as VAT.
With regard to taxes that are administered by the customs administration (e.g. energy duty and aviation tax), the Central Customs Authority (Generalzolldirektion) has been instructed to make appropriate concessions to taxpayers. The Central Customs Authority has already reacted and provided further guidance on its homepage. The same applies to the Federal Central Tax Office (Bundeszentralamt für Steuern), which will proceed accordingly with regard to insurance tax and value added tax, which fall within its remit. The German tax authorities have extended the VAT deferment period until the end of 2020.
For question related to previous announced newsletters about German VAT reliefs during Covid 19, please contact your relevant German tax office, depend in which country your company is based.
It has been reported that there are discussions as to whether an extension of the deadlines for submitting VAT returns or a general changeover from monthly to quarterly VAT returns could be made. There is nothing set in stone for this right now.
Germany has extended its due date for the annual VAT return to May 31
VAT refund to entrepreneurs from non-EU member states: To mitigate the economic impact of the COVID-19 pandemic. On request, extension of the application deadline for applications from companies from third countries that affect the calendar year 2019.
- Businesses affected by the Covid-19 outbreak may apply for delayed VAT payments until end of 2020.
- Reduced VAT rate from 19% to 7% apply for gastronomy for a limited period from 1.7.2020 to 30.6.2021.
- If companies are unable to make tax payments this year due to the economic consequences of the corona pandemic, these payments are to be deferred on request and generally free of interest. Companies can apply until December 31, 2020. Businesses must demonstrate that they are directly affected. This measure affects income and corporate tax as well as sales tax(VAT).
- Reimbursement of special advance payments.
- Restaurant and catering services which are subject to the reduced tax rate due to the Corona Tax Assistance Act, will be taxed with VAT at a rate of 7 % in the period from 1 January 2021 to 30 June 2021.
- The VAT rate will return to 19% from 1 July 2021.
Minister announces Suspension of payment of Sales Tax amounts due by end of March by 4 months. All initiatives are applicable to businesses in areas of the country where sectors of the economy have been unable to operate for more than 10 days owing to restrictions imposed by the government to contain the coronavirus.
Announced 18/03/2020: Report from our correspondent Vassilis Dafnomilis
On 11 March 2020, a legislative act was published in the official government gazette introducing, among others, the following tax and economic measures aimed at mitigating the effects of COVID-19 for taxpayers:
- extension of the deadline for VAT payment;
- suspension of the collection of VAT debts for businesses affected by the occurrence and dissemination of COVID-19;
- extension of the deadline or suspension of payment of certified debts to tax authorities, as well as of instalments of tax debt payment arrangements; and
- extension of the deadline or suspension of payment of certified debts pertaining to social security contributions as well as of instalments of social security contributions debt payment arrangements.
It is expected that more measures will be announced in due time.
Suspension of payment of VAT under conditions. In businesses that have suffered financial hardship the occurrence and spread of COVID-19 coronavirus the payment deadline may be extended and the collection of outstanding debts is suspended from VAT declarations with tax payable (debit). During the period of extension of the deadline for payment and suspension of collection, the amounts owed shall not be subject to any interest or surcharge. By decision of the Minister of Finance, after recommendation by the Governor of the Independent Public Revenue Office (ADAD), identifying the affected businesses by sector and by region, by time extension of the deadline for payment and suspension VAT collection, as well as any other necessary detail of the application of this. Not clarified if it belongs also to foreign companies.
The payment of VAT due between 11 and 30 March is suspended up until 31 August 2020 for affected enterprises. The payment of VAT already due on 11 March 2020 is suspended up until 31 August 2020 for affected enterprises. No late payment interest or surcharges are calculated during the suspension period. As a prerequisite for the suspension, the enterprise must maintain all job positions. The applicable VAT rate is reduced to 6% (from 24%) until 31 December 2020 for the below goods: rotective masks and gloves, antiseptic products, wipes and relevant antiseptic, soap and other products used for personal hygiene purposes, ethyl alcohol.All manufacturing activities for the production of antiseptics by industrial and craft enterprises for the benefit of the Ministry of Health are VAT exempt, whereas the relevant input VAT will be deductible.
Greece will allow VAT payers to withhold 25 percent of their VAT due in April if they do not lay off employees.
E-invoicing delayed until June 2020: The Greek Public Revenue Authority (AADE) has published concerning a customs duty and VAT exemption being provided on the import of personal protective equipment, respirators, disinfectants, and other medical goods and equipment to combat the COVID-19 pandemic. To qualify for the exemption, the goods must be made available free of charge to specified beneficiaries, including to the Greek State, public entities, local organizations, local government, and ecclesiastical entities, as well as charitable and for-profit entities supervised and controlled by such beneficiaries. The exemption is effective with respect to qualifying imports from 30 January to 31 July 2020.
The Government will reduce VAT rate from 24% to 13% for coffee, tea, soft drinks, and chocolate drinks sold in coffee, as well as for air and ferry tickets, which will be valid at least until the end of September 2020.
- No VAT on goods and services donated to the Greek government to help with the fight against the spread of COVID-19.
- VAT reduction from 24%, to 6%, for sanitary products until end of 2020
- A five-month extension, until 31.09.2020, to pay VAT that is due at the end of March and April, May for businesses that have ceased their operations or those that are included in a special list to their business activity code.
- E-invoicing delayed until June 2020
- VAT exemption on the import of personal protective equipment, respirators, disinfectants, and other medical goods and equipment regarding COVID-19 pandemic. The goods must be made available free of charge to specified beneficiaries, including to the Greek State, public entities, local organizations, local government, and ecclesiastical entities, as well as charitable and for-profit entities supervised and controlled by such beneficiaries to be exempt. This exemption is takes effect for imports from 30 January to 31 July 2020.
- The Greek government announced a suspension of the VAT payment for November 2020 until 30 April 2021.
- This will apply to businesses that have been financially affected as per their activity code numbers, or whose operations have been suspended due to a state decision.
- The corresponding debt can be subsequently repaid in 12 instalments at zero interest or 24 instalments at an interest rate of 2.5% from May 2021 onwards.
- The exemption on import duties and VAT for goods related to combating the COVID-19 pandemic extended up to 30 April 2021.
No official update from Tax Authorities
Currently, there is no possibility to extend the VAT payment due dates or filing deadlines. As for the future we expect, that the tax authority might not claim the late payment interest fee, but it is not official.
Officially there is an option to defer the payment for a specific duration, it depends on the client’s request. In order to defer the payment, we have to fill out a specific notification form. The tax authority might defer the payments if the following three criteria are met:
- the applicant is in default of payment which prevents him from paying off his debts immediately,
- the applicant has payment difficulties, which cannot be attributed to them and acted as he would have been expected in the circumstances to avoid it;
- the payment difficulties are of a temporary nature, so it is probable that the tax debt will be paid at a later date.
Therefore the notification form must be enclosed with the latest balance sheet of the clients and specific reasoning.
It is possible to ask for deferment and also for partial payment of earlier VAT liability. Each application has an official fee of HUF 10’000.
No update regarding VAT reliefs.
Online Account: switching is not required as announced on 20.03.03. Due to the epidemic situation, amendment of the XSD-schema to be uploaded to the Online Invoice system is postponed. The new 2.0 data structure will only have to be used from July 1 2020 (and not April 1 – v 1.1 version can be used for 3 additional months).
Hungary is to launch a 2.5% retail turnover tax 1 May for the duration of the COVID-19 crisis.
- Under the decision, between 30 January 2020 and 31 July 2020, imports of products that can be used to protect against the coronavirus for the benefit of Covid 19 will be duty-free and VAT-free.
- Businesses may apply for tax (including VAT) payment deferrals. But there is a HUF10,000 administrative fee. Deferrals has been simplified, whereas normally lots of attachments had to be filed, a special form is sufficient.
- No extension for the deadline to file tax returns speed up of VAT refunds.
Returns must continue to be filed on time but no late interest penalties will be applied for unpaid VAT remittances for Jan & Feb returns for companies in difficulty. The Irish revenue have advised companies to contact them directly to renegotiate payment terms
Small and medium enterprise (SME) Businesses*
- Tax Returns: businesses experiencing temporary cash flow difficulties should continue to send in tax returns on time.
- Application of Interest: the application of interest on late payments is suspended for January/February VAT and both February and March PAYE (Employers) liabilities.
- Debt Enforcement: All debt enforcement activity is suspended until further notice.
Tax Clearance: current tax clearance status will remain in place for all businesses over the coming months.
Larger Businesses (Non-SME Businesses)
Businesses, other than SMEs, who are experiencing temporary cash flow or trading difficulties should contact the Collector-General’s office on (01) 7383663. Alternatively, these businesses can engage directly with their branch contacts in Revenue’s Large Corporates Division or Medium Enterprises Division.
Irish Revenue announced measures to assist SMEs experiencing cash-flow difficulties. The application of interest on late payments is suspended for January/February VAT and both February and March Employers liabilities. All debt enforcement activity is suspended until further notice. Irish Revenue have indicated that they will prioritize the approval of repayments,for VAT refunds, to taxpayers.
The deadline date for the filing of the 2019 Annual VAT return is postponed to 30 June 2020.
Ireland has suspended interest on late payments of January-February VAT and February-April Pay-As-You-Earn liabilities for small and medium-sized businesses until further notice.
Temporary VAT zero rating of supplies of personal protective equipment, ventilators and other medical products from 9 April 2020 up to 31 July 2020
Where a business donates hot meals free of charge to charities and health care providers involved in the response to the Covid-19 crisis for distribution to vulnerable groups or for consumption by front line staff, Revenue will concessional disregard those supplies for the purposes of determining the business’s entitlement to deducibility. Where a business donates food products (including cold food takeaways) and non-alcoholic drinks free of charge to charities and health care providers involved in the response to the Covid-19 crisis for distribution to vulnerable groups or for consumption by front line staff, Revenue will concessional not require the business to apply the normal self-supply rules and will allow the business to maintain an entitlement to deducibility in respect of those donations. This concessional treatment will apply from 9 April 2020 up to 31 July 2020, subject to review.
- Affected businesses advised to continue to file tax returns on time;
- Temporary zero rating of supplies of personal protective equipment, ventilators and other medical products to the HSE, hospitals and other health care settings of personal protection and specified medical equipment for use in the treatment of patients with Covid-19.
- Relief from the payment of import duties and VAT for goods imported to combat COVID-19
- Revenue will work with taxpayers to help resolve their tax payment difficulties: they should engage with Revenue as soon as possible where they are facing difficulties in paying tax liabilities Interest on late payments VAT liabilities are to be suspended.
- All Revenue debt enforcement activity will also be suspended until further notice.
- The revenue have also confirmed that the current tax clearance status will remain in place for all businesses over the coming months.
- From 9 April 2020 to 30 April 2021, there will be a temporary zero rate of VAT for the supply of Covid-19 vaccines and test kits and the temporary application of the zero rate of VAT to certain supplies of personal protection equipment (PPE) and medical equipment.
The terms of the payments scheduled for 16 March will be deferred by a rule in the decree of the next adoption by the Council of Ministers
Update announced on 17/03/2020: The deadline for February F24 tax payments has been extended from the 16th March to the 20th of March 2020. This is included in the draft decree and expected to be published
There are several VAT measures which belong to those companies that have fiscal domicile, legal or operative address in Italy.
Tax payments – Payment of VAT due on 16 March 2020 was postponed to 20 March 2020. VAT payments up to 30 March 2020 are suspended (for all taxpayers operating in sectors particularly hit by the COVID-19 crisis (e.g. tourism, sport, entertainment, art, culture, education, transport, food, no-profit).
VAT payments from 8 March to 31 March 2020 are suspended for taxpayers with a previous FY turnover up to EUR 2 million and who are established in Italy or have therein a fixed establishment (including, irrespective of any turnover, those located in specific areas (e.g., Bergamo, Cremona, Lodi and Piacenza provinces), irrespective of any turnover thresholds). It is not clear from the wording of the law whether the deferment also applies to Italian VAT registrations of non-established taxable persons.
Tax filings – VAT fulfilment due in the period 8 March – 31 May 2020 are postponed to 30 June 2020 for taxpayers who are established in Italy or have therein a fixed establishment. It is not yet clear from the wording of the law whether the deferment also applies to Italian VAT registrations of non-established taxable persons.
The deadline for the filing of the Annual VAT return of 30 April 2020 is postponed to 30 June 2020. Suspension of the Tax Authority’s activities – The ordinary terms for tax audit, tax assessment, tax collection and tax litigation are suspended from 8 March 2020 to 31 May 2020. The terms applicable to reply to ruling requests are suspended from 8 March to 31 May 2020. It is uncertain whether or not those measures can apply to non-resident companies.
Italy will defer April-May payments of VAT, social security and welfare contributions, and withholding taxes on wages and salaries until June 30 for qualifying small and large businesses.
Proposal authorising Italy to maintain a lower exemption threshold from EUR 65 000 to EUR 100 000.
- Masks exempt from VAT until the end of 2020, then with 5% instead 22%
- Italian tax Authorities confirmed that also foreign businesses VAT registered in Italy can benefit from the recent postponement of VAT fulfilments including Annual VAT return filing.
- Postponement of VAT payments under the Italian VAT grouping scheme
- Proposal authorising Italy to maintain a lower exemption threshold from EUR 65 000 to EUR 100 000.
- The deadline for the submission of the TR form for Q1 2020 in order to ask for refund, VAT credit accrued in the quarter or to offset such VAT credit is postponed to 30 June 2020.
The government is ready to allocate up to 1billion Euro to various financial instruments to support companies suffering a short term t/over slump. The finance minister added these funds will be used to support tax breaks however no specific details have been published in relation to VAT
No updates for VAT filing and VAT payment, just for VAT refunds. A quicker process for refunds of input value-added tax (VAT); beginning 1 April 2020, the tax authority will refund the approved input VAT within 30 days after the due date of submitting the VAT return (and not until the end of the tax year), and the faster refund of input VAT will also apply for January and February 2020.
(1) For the period from 2020 on 1 April 2020. On 31 December the overpaid value added tax refund shall be determined by this law, and that period is not applicable to the Value Added Tax Law, 109 and 110 of the procedures laid down.
(2) The State Revenue Service, when performing tax administration measures, shall refund the approved overpaid value added tax amount presented in the value added tax declaration submitted to the State Revenue Service after 31 March 2020 within 30 days after:1) the term for submission of the value added tax declaration specified in Section 118 of the Value Added Tax Law ;2) the dates of submission of the value added tax declaration, if it has been submitted after the term for submission of the value added tax declaration specified in Section 118 of the Value Added Tax Law ; 3) the dates of submission of the specified value added tax declaration, if a specified value added tax declaration has been submitted.
(3) Before refunding the approved overpaid value added tax amount, the State Revenue Service shall cover the taxes, fees, other payments specified by the State and related payments administered by the taxpayer State Revenue Service in accordance with the procedures specified in the Law On Taxes and Fees .
(4) The State Revenue Service shall refund the approved overpaid amount of value added tax which has arisen for a value added tax group to the parent undertaking.
(5) The State Revenue Service shall repay the overpaid amount of value added tax incurred by a person who has been excluded from the register of value added tax payers of the State Revenue Service within 30 days after the decision to exclude the registered value added tax payer from the State Revenue the register of value added tax payers of the Service.
(6) Until 31 March 2020, the State Revenue Service shall repay the overpaid amount of value added tax which has been carried forward to the next taxation period until the end of the taxation year or which has arisen from a person who has been excluded from the State Revenue Service value added tax register. April 14, 2020.
(7) When performing tax administration measures, the State Revenue Service shall refund the approved amount of overpaid value added tax presented in the value added tax declaration which has been submitted to the State Revenue Service by 31 March 2020 and has not been approved by 31 March 2020. Within 30 days after the submission of the value added tax return to the State Revenue Service.
(8) If the term for approval of the overpaid value added tax amount was extended until 31 March 2020 in accordance with Section 110 of the Value Added Tax Law , the State Revenue Service shall refund the approved overpaid value added tax amount not later than on the next working day after the overpaid value added tax confirmation of the reasonableness of the amount.
- With effect from 1 April 2020, the administration will refund input VAT amounts to all taxpayers within 30 days of the term for the submission of the VAT return.
- Latvia discuss to return the amount of confirmed VAT currently accrued until the end of 2020, in accordance with the VAT returns already submitted for January and February 2020. A revision of the rate of VAT over payment is possible in 2021.
- There is a possibility to split tax payment for up to three years in government-designated sectors if the delay of said tax payment is due to the Covid-19 pandemic
The government to allow businesses to postpone tax payments or agree on tax payments scheduled without interests & penalties.
The government approved that entities: importing goods for purposes of fighting COVID since 26 February 2020 (Article 74 of the EC Regulation 1186/2009), are exempt from customs duties.
VAT rate cut considered on catering services for food and non-alcohol drinks from 21% to 9%
- The tax authorities have announced the delay of the tax execution procedures, payment of fines and late payment due to interest, and published a list of taxpayers who are automatically exempt from default interest during Covid 19, all other can apply to the tax authorities for assistance
- Businesses have the possibility to conclude a tax loan agreement with the tax authorities and make the tax payments according to the agreed schedule. In this case, taxpayers are to be relieved from late payment penalties and late payment interest
- Donating goods to healthcare sector for COVID-19, may deduct input VAT
- VAT rate cut considered on catering services for food and non-alcohol drinks from 21% to 9%
No specific measures announced regarding VAT
The Registration Duties, Estates and VAT Authority (Administration de l’enregistrement, des domaines et de la TVA) informs that, due to the coronavirus pandemic, there is no administrative penalty for exceeding a deadline for filing VAT returns. This tolerance applies until otherwise indicated by the administration.
Indirect tax measures
On 18 March 2020, the Indirect Tax Administration announced that due to COVID-19, a possible failure to file VAT returns within the normally applicable deadlines will not be subject to fines. This measure will apply until further notice; and, Starting from the week of Friday 20 March 2020, the indirect tax administration will reimburse VAT credit balances below EUR 10,000.
Request for deferral of VAT payment via MyGuichet.lu
Because of the crisis related to Covid-19, the administration shall, upon request , defer the terms of payment of VAT . This measure is intended for persons subject to VAT (natural and legal persons) as well as to non-subject legal persons identified for VAT who:
- are exposed to financial difficulties having a direct link with the Covid-19 crisis ;
- wish to benefit from the fiscal measures decided by the Government to deal with the spread of the coronavirus. Data subjects can submit their request for deferral of payment of the VAT due online via MyGuichet.lu , without the need for a LuxTrust certificate
Luxembourg is allowing businesses with financial difficulties to postpone all VAT payments going back to the start of the COVID-19 crisis.
- Removal of late penalty fees, the Government encourages businesses to contact the tax authorities if they have any difficulties in paying taxes. Data subjects can submit their request for deferral of payment of the VAT due online via MyGuichet.lu, without the need for a LuxTrust certificate.
- Luxembourg is allowing businesses with financial difficulties to postpone all VAT payments going back to the start of the COVID-19 crisis.
- Credits under EUR 10,000 will be immediately reimbursed
- The Luxembourg government has decided to revoke the special measures for VAT filing, and consequently all deadlines have to be respected as before the COVID pandemic.
- Outstanding VAT returns need to be filed as soon as possible.
The government announced on 14th March that a VAT payment holiday will be enforced for businesses for March & April. Vat credit refunds will also be accelerated.
VAT payments due by 15 March 2020 and 15 April 2020 to be settled in two equal instalments with the two quarterly returns immediately following the quarter in relation to which the VAT was deferred.
No interest or penalties will be charged on tax payments that are postponed in terms of this measure.
The Prime Minister of Malta, announced on 25.03.2020 Covid19 measures which include: March and April tax payment deadlines relating to Provisional Tax, Social Security Contributions, payments under the FSS and VAT will be postponed to a further date.
It is understood that businesses will be given adequate time to gradually pay the suspended tax due;fast-tracking of repayments of certain refunds or credits due to the taxpayers, such as VAT refunds.
- Protective face masks and visors added to the list of products which 5% VAT reduced rate
- extension of the scheme for taxes owed up to and including June 2020
- March and April tax payment deadlines relating to VAT will be extended and has to be settled in two equal instalments with the two quarterly returns, immediately following the quarter whose dues have been deferred.
- VAT credit refunds will sped up.
The tax administration is to grant deferred payments for income tax, value-added tax (VAT), tax on wages and corporation tax if the company provides a written statement reporting the challenges and issues that it has encountered due to the coronavirus crisis. As soon as the request is received by the tax authorities, the tax authorities are to stop the collection, with an assessment at a later date. No penalties will be imposed for late payment of tax.
You can ask us for a special postponement of payment. This is possible for all assessments of income tax, corporation tax, sales tax (VAT). By sending a letter, where you request a deferral of payment, stating that you had payment problems due to the Corona outbreak. NL authorities will stop the recovery measures.
You will automatically receive an extension of the payment by 3 months. You don’t have to pay a fine if you don’t pay VAT or wage tax on time. A payment delay of 3 months can be too short for you. You can also request an extension for a longer period. You will be asked for additional information (possibly a statement of a third expert). The cabinet wants to keep the administrative burden of applying for a deferral of payments as low as possible. For the first 3 months, no statement from a third expert (e.g. an accountant or industry organisation) is required.
When can you request a postponement?
You can request a postponement for all income tax, corporation tax, sales tax (VAT) and wage tax assessments. This means that you can apply for the postponement once you have filed a tax return and received an assessment.
Three months deferral of tax payments for VAT;
Deferral of tax payments for excises until the 15th day after the Dutch COVID-19 measures come to an end; reduction of tax and collection interest to 0.01% and waiver of administrative fees for late payment for VAT.
You can ask us for a special 3-month extension of VAT payment. You will then automatically apply for a one-time payment extension for all the taxes listed below. In any case, this relaxed postponement policy applies until 19 June 2020.
Deferral of VAT payment longer than 3 months:
A payment delay of 3 months may be too short for you. You can also request an extension for a longer period. Until now, this is only possible by letter and not with an online form. You then automatically apply for a one-time extension for all the taxes listed below. In any case, this relaxed postponement policy applies until 19 June 2020. Reporting must be kept on time also.
- Wider application of the VAT exemption for the outsourcing of healthcare staff;
- Free provisioning of medical aids not subject to VAT; and,
- A reduced VAT rate when offering online sports lessons
- No VAT on face masks
- Also exempt imported personal protective equipment for healthcare under certain conditions with an exemption from customs duties back since mid of March
- In order for entrepreneurs to suffer with liquidity problems, there is the option of requesting a special deferral of tax payment. Upon request, the Tax and Customs Administration will automatically grant 3 months deferment of payments and will stop the recovery measures without penalties. Should the deferment of 3 months not be sufficient, it is possible to request for an extension if caused by the corona virus.
- No fine shall be imposed, and interest is reduced to 0.01 %.
- Advanced application of the VAT exemption for the outsourcing of healthcare staff
- Free provisioning of medical aids not subject to VAT
- A reduced VAT rate when offering online sports lessons
- No extension of Vat return filling deadline
- Postponed enforcement of non-EU exporter of record rules.
The extension has been granted to delay SAF-T mandatory monthly filings until July 2020 & introduce Vat payment holiday.
Poland announced that the interest normally charged on the tax arrears will be temporarily abolished. Other VAT positions within the approved ‘anti-crisis shield’ include postponing the go-live date for the combined SAF-T file with the VAT returns for large companies from the planned 1st of April onto the 1st of July 2020 and the application of the new VAT rates matrix from the planned 1st of April onto the 1st of July 2020 as well as the extension of the deadline for submitting a notification of payment to a bank account of the supplier not included in the Whitelist from 3 days to 14 days.
From July 1, 2020, the provisions of the Regulation regarding the detailed scope of data contained in tax returns and VAT records, i.e. the provisions governing the content of the new JPK_VAT, will apply. Pursuant to the new solutions, fiscal receipts recognised as simplified invoices issued in accordance with the VAT Act will not have to be shown separately in the new JPK_VAT – until December 31, 2020. (Note: the simplified invoice is a fiscal receipt up to the amount of PLN 450 gross (EUR 100), which contains the buyer’s tax identification number.) VAT relief for school equipment: 0% VAT rate for free delivery of computer hardware in the form of portable computers such as laptops and tablets
- 6% VAT on importation, intra-community supply and acquisition of respiratory protection masks and disinfectant from 8th of May to 31st of December 2020
- Delay of the extension of the combined SAF-T monthly filing for large companies, postponed from the 1st of April 2020 to the 1st of July 2020.
- The implementation of the CN classification of goods at lower VAT rates has been postponed from 1 April 2020 until 30 June 2020.
- Businesses suffering due to the coronavirus (Covid-19), paying their taxes on a timely manner can apply for a VAT payment holiday.
- The tax authorities are also hoping to make VAT refund payments more quickly. In addition, many simplifications have been proposed, e.g. with regard to the “white list” and split payment.
- Reduction of 0% VAT rate will apply to donations of certain healthcare related products (e.g. medical products, medicines, masks……) for the purpose of COVID-19 until 31 August 2020
- 0% VAT rate will apply to donations of certain IT equipment to selected education bodies
- Deadline to submit information on payment to an account not included in the White List is extended from 3 days to 14 days.
- March 2020 Intrastat return could be submitted by 20 April 2020 without negative consequences.
- a temporary (until 31.Aug.2020) VAT exemption for import or intra-Community acquisition of specific goods related to health care intended for the donation for the specified governmental/public bodies and hospitals dedicated to treat patients infected with SARS CoV-2 is under way.
Portugal has announced support measures which should include no penalties on late VAT payments for businesses affected by the outbreak. No specific details available yet
Businesses affected by the Covid19 can benefit from a deferral of VAT payment over 3 months (without interest) or 6 months (with interest on the additional 3 months).
Portugal mandatory B2G e-invoicing has been postponed to 1 July 2021 for small and medium enterprises with the announced new measures against the pandemic. The payment of VAT (applicable to the normal monthly and quarterly regimes) and of withholding taxes on IRS and IRC , can be made: immediately or in a fractioned way in 3 or 6 monthly instalments without interest by taxpayers with a volume of businesses up to 10 million euros, calculated in 2018, or which started their activity as of January 1, 2019 (article 1 and article 2 of Decree-Law no. 10-F / 2020 of 26 March ).
For the remaining taxable persons, payment can be made in instalments, if they have verified a decrease in the invoicing communicated through the e-invoice of at least 20% in the average of the three months preceding the month in which this obligation has to be fulfilled. , compared to the same period last year. (Article 1 and Article 2 of Decree-Law No. 10-F / 2020 of 26 March ). These instalment payments are exempt from presenting a guarantee. (Article 1 and Article 2 of Decree-Law No. 10-F / 2020 of March 26).
The periodic VAT declarations , referring to the period of February 2020, to be delivered within the legal period provided for in no. 1 of article 41 of the CIVA, can be calculated based on the data contained in the E-Invoice, and the situation must be regularised by means of a replacement declaration provided that this replacement and the respective payment / settlement occurs during the month of July 2020, based on all supporting documentation, without any additions or penalties.
Simplification in the fulfilment of this declaratory obligation applies to taxable persons:
- with a turnover, up to 10 million euros, for the year 2019;
- who started the activity on or after January 2020; or yet
- who restarted their activity on or after that date and did not achieve turnover in 2019. ( Order No. 129/2020 – XXII – SEAF).
Portugal postponed monthly VAT returns for seven days until April 17 and associated payments for five days until April 20 instead of April 15.
- 6% VAT on importation, intra-community supply and acquisition of respiratory protection masks and disinfectant from 8th of May to 31st of December 2020
- VAT exemption on the supply of goods, free of charge, to the State, Private Institutions of Social Solidarity
- Payment in three or six monthly instalments, without interest or penalties, regarding the VAT due by taxpayers in April, May and June affected by Covid 19
- February VAT return may be filed, on the basis of the data submitted to the e-invoicing system and can be submitted by 17th of April instead 10th of April and VAT paid by 20th of April instead 15th of April.
- Possibility to circulate invoices in pdf format for April, May and June, which are treated as electronic invoices for tax purposes
- Deadline for implementing E-invoicing in public contracts was postponed, small and medium-sized companies to 30thJune 2021, micro companies to 31st December 2021 and all other companies to 31stDecember 2020.
No measures have been undertaken yet, however, business associations have been requested to postpone the reporting calendar. No official feedback has been received yet from the Romanian tax authorities.
Romania’s National Agency for Fiscal Administration (ANAF) has prepared several measures aimed at supporting the business environment. Some of the steps to be taken are:
– VAT refunds during March for all processed returns/claims for which refund decisions have been issued;
– implementation of a new VAT refund mechanism intended to speed up refund claim processing, starting 1 April 2020;
– suspension of tax audit proceedings (tax inspections, anti-fraud checks), except for checks that can be performed remotely and except for tax evasion cases, where relevant indications are available;
– suspension of the antifraud activities related to Filter 2 and of the specific activities at the Hungarian and Bulgarian border checkpoints.
These measures will apply throughout the duration of the state of emergency in Romania and for 30 days after the termination thereof.
The 25 March 2020 deadline for filing tax returns is postponed to 25 April 2020.
Companies that are required to file tax returns by March 25, 2020, do not benefit from a deferral of the deadline, as previously announced by the authorities. Moreover, beyond the problems created by the COVID-19 epidemic, taxpayers must also adapt quickly to the modification of an essential VAT declaration: D 390. This form has recently been modified.
Measures adopted for managing the effects of the COVID-19 pandemic with a view to helping or even saving Romanian businesses, No updates mentioned about VAT for foreign companies.
- Implementation of a new VAT refund mechanism, which targets settlement of negative amounts, starting from 1 April 2020
- Postponement of most ongoing VAT audits
- The tax authorities have confirmed they will not charge any interest or penalties during the national emergency period and 1 month after.
- Postponement of the payment deadlines of certain fiscal obligations for the taxpayers.
- supplies of medicines, protective equipment, other devices or medical equipment and sanitary materials that can be used in the prevention, limitation, treatment and control of COVID-19, carried out until 1st of September 2020 to associations and foundations legally incorporated are VAT exempt with credit operations (purchased by associations / foundations are used to combat COVID-19 or donated to other entities that use them to combat COVID19)
The Romanian government has approved the staggering of outstanding debts.
The government approved the application of the simplified alternatives for granting payment rescheduling for a maximum of 12 months.
The Executive decided to extend the period in which no interest and penalties are levied for unpaid tax obligations until December 25.
This measure aims to support taxpayers that are in difficulty right now.
In order to be granted the opportunity to reschedule, the taxpayer must meet some conditions:
- Submit an application by 15 December 2020. A staggered schedule containing the proposed amounts may be included;
- Not be involved in insolvency proceedings;
- Not to be dissolved according to the legal provisions in force;
- To have submitted all fiscal declarations; and
- Liability not established according to the legislation on insolvency/or joint and several liability
This rescheduling is granted for tax amounts exceeding:
- RON 500 for individuals; and
- RON 5,000 for companies
For late payments of the scheduled amount, 0.01% interest per day of the delay will be incurred and a total penalty of 5% of the unpaid amount will be due.
No official update from Tax Authorities
The Ministry of Finance and the Ministry of Economy proposed measures with the aim to ease the impact of the coronavirus crisis on the economy, including tax measures.
The main proposed tax measures are summarised below.
- Introduction of systematic support of business investments in fixed assets, specifically a super tax deduction and accelerated depreciation will be granted.
- Amendments to the rules for tax losses.
- Extension of filing deadline for tax returns for all taxpayers from 31 March 2020 to 30 June 2020.
- Extension of deadline for VAT payments.
- Exemption from penalties for late payments of taxes.
- Temporary abolition of social insurance and health insurance contributions for self-employed entrepreneurs over three months (March, April and May). These contributions will be split over the following 18 months.
- Exemption of wage payments to employees from individual income tax and social insurance and health insurance contributions.
An official government decree to enact the proposed measures are expected soon.
Currently, the law does not allow for the extension of the time limit for filing a VAT return. If you do not submit in time we recommend that you ask for the forgiveness of the missed period.
The financial report shall take due account of, requests to waive the missed period. However, the current situation regarding the spread of COVID-19 is sufficient reason. At the same time, the Financial Report, together with the Ministry of Finance of the Slovak Republic, is working on other measures, including for the area of VAT, which would be mitigated coronavirus consequences for taxpayers. The financial report in cooperation with the MFSR is working to amend legislation to make no penalties for missed deadlines to file a tax return in this situation. We will notify you of this change.
Financial Directorate assured taxpayers that tax authorities will be lenient in case of delays in VAT submissions or VAT payments, however no legal measure have been approved so far.
Value added tax (also applies to control statements and VAT summary statements) The law does not currently allow for an extension of the time limit for submitting a VAT return, so if you do not submit your submissions on time, we recommend asking for a waiver of the missed time limit within 30 days at the latest. The financial report shall take into account reasoned requests for the waiver of the missed deadline for filing the tax return. The Financial Report, in cooperation with the Ministry of Finance of the Slovak Republic, is preparing a change in legislation so that no sanctions for missing the deadline for filing the tax return and for paying the tax are not imposed in this situation.
- No extension of the time limit for submitting a VAT return, if companies cannot submit on time they should inform the administration before.
- Slovak Authorities has advised they will monitoring and evaluating the situation on a daily basis and will take decisions based on the current situation
- exemption from import duties and VAT on importation of medical supplies
- The SK parliament approved the postponement of tax distortion during the pandemic
- The SK parliament approved the possibility of interruption of tax audits
No official update from Tax Authorities
The taxpayer may apply for a deferral of tax for up to two years, or pay tax in a maximum of 24 monthly instalments over a period of 24 months, by e-tax or, by way of exception, by e-mail, because of the loss of ability to generate revenue from the COVID-19 epidemic. . Deferral and instalment payments can be made e.g. for payment on the basis of the annual tax return, VAT calculation, inspection decision, and also for advance payments of tax and withholding tax (not applicable to social security contributions). No interest accrues at the time of deferral and instalment payment.
Exemptions, from VAT and import duties of masks and other protective equipment.
- Temporary exemption from VAT on supplies and the acquisition of protective and medical equipment within the European Union. From 13 March 2020 to 31 July 2020 inclusive, a VAT exemption is prescribed with the right to deduct VAT, which will apply to certain supplies of goods and to the acquisition of goods from other Member States for the goods determined by the Government of the Republic of Slovenia. Exemption applies to import duties and VAT by the import of goods into the European Union. Exemption from VAT may be granted only in case the taxpayer supplies the goods to a governmental authority or a charitable organisation.
- From 13 March 2020 to 31 July 2020 inclusive, a VAT exemption is prescribed with the right to deduct VAT, which will apply to certain supplies of goods and to the acquisition of goods (protective and medical equipment) from other Member States for the goods determined by the Government of the Republic of Slovenia. Exemption applies to import duties and VAT by the import of goods into the European Union. Exemption from VAT may be granted only in case the taxpayer supplies the goods to a governmental authority or a charitable organization.
- The deadlines for VAT return submission and VAT payment in Slovenia have not changed due to the COVID-19 epidemic.
- However, companies can apply for tax payment deferral for up to 2 years or payment in 24 monthly instalments. Companies have to contact the Slovenian Tax Authorities
- Exemptions, from VAT and import duties of masks and other protective equipment
Suspension of filing deadlines from 13th March to 30th May may be extended by submitting an application to Spanish tax authorities. This is not applicable to larger businesses with turnover about 6m€
Spain has closed their VAT and tax offices from 15th March for face to face meetings – Royal Decree 463/2020 – All tax filing deadlines are suspended for 15 calendar days but will resume after this time unless the Congress authorises an extension
VAT implications for non-resident companies operating in the Spanish territory. After the newly published regulation:
Nothing is specifically said in article 33 of the Royal Law-Decree about the extension of the existing deadlines for the filing of periodical VAT returns, informative returns which will remain unaffected Besides, said article 33 of the Royal Law-Decree limit the scope of the general extension of voluntary payment deadlines until the 30th of April (for existing liquidations)/the 20th of May (new procedure) in the dead-lines to tax debts contemplated in number 2 and 5 of article 62 of the General Tax Law (taxes liquidated by the tax administration either in a voluntary or an executive procedure). This would exclude from the provision of any self-assessed tax debts, as those resulting from the periodical VAT returns.
Extension of deadlines for all tax procedures: article 33 of the Royal Law-Decree regulates the general extension until the 30th of April (for existing procedures)/the 20th of May (for new procedures) in the dead-lines of any action required from the taxpayer in all procedures before the tax administrations and so supersedes (if the motivation and ninth additional provision of the Royal Law-Decree are attended) the suspension regime contemplated in the third additional provision of Royal Decree 463/2020 of 14 March. Postponement of payment.
No additional changes have been introduced in the general regime for the postponement of tax debts, which, apart from the special postponement regime for small companies as regards tax debts under 30,000 Euros regulated in article 14 of Royal Law-Decree 7/2020.
It is not to be stated yet that new legislative or administrative regulation will be issued that may affect the existing described status quo.
Automatic extension of deadlines in case of SMEs.
Entities applying grouping schemes for CIT or VAT grouping will NOT be able to benefit from this measure irrespective of their turnover volumes
VAT rate from 21% to 4% to e-publications (as of April 23, 2020) and 0% VAT for PPE to health centers
To allow the supply of medical equipment to be carried out quickly and effectively, a value-added tax rate of zero percent is established until July 31, 2020 applicable to domestic deliveries, imports and intra-community acquisitions of this type of goods whose recipients are public, non-profit entities and hospital centres.
In relation to the Value Added Tax, since the confinement has increased the demand for cultural products and information from citizens, to facilitate access to digital books, newspapers and magazines, through a provision In the end, the applicable tax rate is reduced to 4 percent, while eliminating the existing tax rate discrimination between the physical book and the electronic book.
Article 8 Applicable tax rate of Value Added Tax on deliveries, imports and intra-community acquisitions of goods necessary to combat the effects of COVID-19. With effect from the entry into force of this royal decree-law and effective until July 31, 2020, the 0 percent rate of Value Added Tax will be applied to the delivery of goods, imports and intra-community acquisitions of goods referred to in the Annex to this royal decree-law whose recipients are entities of Public Law, clinics or hospital centres, or private entities of a social nature referred to in section three of article 20 of Law 37/1992, of December 28 , of the Value Added Tax. These operations will be documented on the invoice as exempt operations.
VAT rate e-publications: With effect from the entry into force of this royal decree-law, the number 2 of section two.1 of article 91 of Law 37/1992, of December 28, on Value Added Tax, which remains worded as follows: “2.º Books, newspapers and magazines, even when they are considered services provided electronically, that do not contain solely or fundamentally advertising and do not consist entirely or predominantly of video or audible music content, as well as the complementary elements that are delivered together with those by a single price. Executions of work that immediately result in obtaining a book, newspaper or magazine in sheet or in continuous, of a photograph of said goods or that consist of the binding of the same.
For these purposes, the tapes, discs, videocassettes and other similar sound or video-magnetic supports that constitute a functional unit with the book, newspaper or magazine, will be considered as complementary elements
Vat rate change on e-books to 4%.
- Extension filing VAT returns under certain conditions
- Possibility to request a payment extension for VAT:
- payment over 6 month, three months interest free, after the third month, no penalty will be charged but late payment interest
- Automatic extension of deadlines in case of SMEs.
- Entities applying grouping schemes for CIT or VAT grouping will NOT be able to benefit from this measure irrespective of their turnover volumes
- Zero Vat until July 31, 2020 applicable to domestic deliveries, imports and intra-community acquisitions of this type of goods whose recipients are public, non-profit entities and hospitals.
- Reduced Vat rate 4% for digital books, newspapers and magazines
Extended deadlines to apply for VAT for businesses that declare their VAT monthly or quarterly. Companies that have paid taxes to their tax account from 1st Jan to March 2020 are eligible to have that tax refunded. Taxes must, however, be repaid including interest within 12 months. Rules will apply only to companies with an acceptable financial track record and will not apply to companies with larger tax debts. Rules are expected to come into force on 7th April but can be applied retrospectively from Jan 1 2020.
Government has announced a 300bn Swedish crown support package – no further update from the previous update
Normally, the Swedish Tax Agency does not allow deferral of payment of deducted tax on employees’ salaries and VAT (VAT), because money for these taxes is assumed as available for payment.
However, they can also grant deferral of these taxes if you show that you have had to use the money to pay anything unintended to mitigate the consequences of the coronavirus.
Cash-flow support for all businesses through the possibility of postponing payment of VAT, social security contributions and tax withheld from employee salaries. These new regulations are proposed to enter into force on April 7, 2020, but to have retroactive effect from January 1, 2020 meaning that taxes already paid may be reclaimed.
- Deferral of VAT payments which are reported monthly, quarterly or yearly. The payment term covers tax payments for three months and is to be granted for up to 12 months. Took effect 30th of March 2020, but can be retroactively applied from 1st of January 2020.
- Interest of 1.25% will be charged, deferral fee of 0.2% (reduced from 0.3% and will not be charged for the first six month)
- The effects of corona make it difficult for many to declare in time. If you submit your declaration or periodic compilation no later than one month from the ordinary deadline, you do not have to pay any delay fee. This applies to the declaration date between March 12 and April 30.
Opportunity to apply for GST payment delays and quicker credit repayments by switching from quarterly to monthly refunds
Any companies who are experiencing cash flow difficulties can apply directly to the ATO for deferred payment schedules and relief from penalties and interests
Changing GST reporting cycle under certain conditions.
If you report quarterly and you are due for a GST refund, moving to monthly reporting means you can get quicker access to GST refunds you are entitled to. Vary pay as you go instalments. If you are a pay as you go (PAYG) instalments payer, you can vary your PAYG instalments on your activity statement, Remitting interest and penalties.
If your business is affected by COVID-19, it will be considered remitting interest and penalties incurred after 23 January 2020. Low-interest payment plans: if your business has been affected by COVID-19 and you need help to pay your existing and ongoing tax liabilities, contact COVID-19Taxissues@ato.gov.au.to discuss entering a low-interest payment plan.
No update, ATO has to be contacted for case by case decision.
- Upon request deferral GST liabilities up to six months
- Upon request low interest payment plan arrangement for GST liabilities
- Quick access to input GST credits
- Upon request changing to monthly reporting per new quarter. Note, once this choice is made, the taxpayer must keep reporting monthly for 12 months before the business can elect to revert to quarterly reporting.
- ATO postponed starting any new audit or assurance cases
- Businesses that reimbursed their customers due to cancelled supplies and events as a result of COVID-19, and who have already paid the GST to the ATO, are able to make a decreasing adjustment to reduce the amount of GST payable in their next business activity statement.
Tax offices closed without any update on the impact of coronavirus
Announcement on the 18/03/2020: On 17 March 2020 the Norwegian government introduced some new measures regarding VAT in Norway due to the COVID-19 virus situation. These measures have been approved in the first hearing by the Parliament, and are expected to be given effect by the government on Friday this week. Further guidelines around the interpretation of the new rules are expected to be provided by the Norwegian tax administration soon.
The VAT-related measures are as follows:
- Payments of VAT which are due on April 10 (deadline for reporting and payment of VAT for the first VAT period (January-February) of 2020), will be deferred. There are ongoing discussions by the Norwegian tax administration for how long the payment will be deferred. We have reason to believe that the deferment will at least last till the deadline for the next VAT period 10 June 2020. It is expected that this will improve the cash flow situation many corporations are now facing.
- The low VAT rate of 12% is reduced to 8% with effect from 1 January 2020. The temporary reduction in the VAT rate is expected to last until end of October 2020. The low rate is applicable to services consisting of passenger transport, accommodation, public broadcasting and the access to cinema, sporting events, funfairs and adventure centers. The intention of lowering the VAT rate is to both improve the cash flow impact of the businesses facing a big impact of the market situation due to COVID-19 and also stimulate the market for these services.
Payment of value-added tax for the first period, due 14 April. The deadline has been extended to 10 June. No extension of the deadline has been proposed for the annual statement for the primary industries. Reduction in rates has been announced which was previously reported.
The deadline for payment of VAT for January-February 2020 period has been postponed from the 10th of April to the 10th of June 2020. Moreover, the tax administration will not impose enforcement fines for late submission of the VAT returns. In addition to that, VAT rate for passenger transport, accommodation, public broadcasting as well as access to cinema, sporting events, amusement parks and adventure centres will be reduced from 12% to 8% from 1 April to 31 October 2020. Link to the Norwegian tax authorities’ announcement can be found here (in English): https://www.skatteetaten.no/en/package-of-measures-in-connection-with-the-coronavirus-situation/#value-added-tax-vat
Low rates are temporarily reduced from 12 percent to 6 percent. The change applies from April 1, 2020 through October 31, 2020. Low rates apply to, among other things, passenger transport, accommodation, public broadcasting and access to cinema, sporting events, amusement parks and adventure centres.
The Tax Administration will not impose enforcement fines for late submission of the tax return for VAT. This includes the following tax returns for VAT: Tax returns for VAT due from March up to and including 10 June. This means no enforcement fine will be issued for late submission of the first payment period (due 14 April) and the second payment period (due 10 June).
Tax returns for VAT that are submitted with an annual deadline (due 10 March) and the annual statement for the primary industry (due 14 April). Even though the Tax Administration is not issuing enforcement fines for the time being, we still encourage enterprises to submit the tax return for VAT as soon as possible.
Reduction of the VAT rate of 12% (applicable on passenger transport, cultural events etc.) to 6%. from 1 April until 31 October 2020
- VAT payment delay from 14 April 2020 to 10 June 2020
- Enforcement temporarily stopped
- Low VAT rate reduced from 12% down to 6%, for a temporary period of 1 April 2020 to 31 October 2020
- deadline to file VAT returns, has not been extended
- Note that the extended payment deadline only applies for businesses ordinary registered for VAT (with bi-monthly reporting), i.e. the extension in payment deadline does not apply for companies simplified registered for VAT because of their supplies of electronic services B2C
- Self-employed individuals, business and private individuals can apply for deferred payment of most tax and duty claims if they are having financial difficulties as a result of Covid-19.
- The deferred payment scheme has been extended and you can now apply until 28 February 2021.
- If you are granted a payment deferral the claim will not be collected in the deferment period.
- It is still possible to pay the claims if individual/companies financial situation improves.
- Interest on overdue payments will accrue in the deferment period. The payment deadline will not change.
- The interest on overdue payments is currently 8% from 1 January 2021.
- The deferred payment scheme includes an instalment scheme from 1 April 2021 to 1 September 2021.
- If you are granted a deferral of payment until 28 February 2021, you will be offered an instalment plan.
- Is you have applied for deferral to a date earlier than 28 February 2021, you will have to apply for a new extension to 28 February for the claim to be covered by the instament scheme.
- The intalment scheme is for those who are still struggling at the end of the payment deferral period.
- Also, Norway temporarily reduced 6% VAT rate extended, until June 2021. This applies to accommodation, leisure and transport.
Considering the reduction of CT temporarily from 10 to 5% and delay filing deadlines and payments by 1 month until April.
There are an extension to income tax return but this special extension does not apply to Corporate or Consumption tax returns, although the tax authorities would consider providing an extension to a specific taxpayer facing hardship on a case by case basis if requested.
The National Tax Agency has released the announcement that filing and payment due dates for individual income tax, individual consumption tax, and gift tax for 2019 will be extended by one month to April 16, 2020 due to the spread of Covid-19
Japan will delay consumption, corporation, and income taxes for one year for businesses with at least 20 percent decline in revenue since February
- The National Tax Agency has released the announcement that filing and payment due dates for individual income tax, individual consumption tax, and gift tax for 2019 will be extended by one month to April 16, 2020 due to the spread of Covid-19
- Consumption tax payments can be deferred for up to 1 year without interest if gross income decreases by 20% or more of Covid 19
- Japan will delay consumption, corporation, and income taxes for one year for businesses with at least 20 percent decline in revenue since February
- A late choice to become a voluntary taxpayer for excise duty purposes is possible if gross income drops by 50% or more
- Customs duty and import consumption tax exemption for donated goods regarding Covid19
No late interest will be charged between March 20, 2020 to December 31,2020 in the event of late payment for VAT, incentive taxes and customs duties.
Value-added tax (VAT), customs duties and special consumer taxes and incidental taxes (tobacco, alcohol, beer, automobile, fuel and mineral oil taxes). For these federal levies and taxes, the default interest rates are set to 0% by December 31, 2020. Nevertheless, the declarations must be made on time. Companies that are subject to VAT actually benefit from interest-free bridging loans if and insofar as they generate mandatory sales.
Late payments of value added tax, special consumption taxes, incentive taxes and customs duties for the period from March 20, 2020 to December 31, 2020 owed no late payment interest (Art. 2 of the regulation). In addition, the statutory provisions apply unchanged. In particular, the deadlines for tax collection must be observed. The tax laws, however, provide for payment relief.
If the payment is subject to considerable hardship within a period, the tax authority can request deferrals or instalments (for direct federal tax, see Art. 166 DBG; for value added tax, see Art. 90 MWSTG).
If a deadline for submission has been missed due to substantial reasons, the deadline can be restored on request (regarding objection deadlines direct federal tax Art. 133 DBG; regarding value added tax Art. 81 para. 1 VAT Act in conjunction with Art. 24 para. 1 VwVG; regarding withholding tax and stamp duties see Art. 24 Para. 1 VwVG). The relief applies regardless of the place of residence or domicile of the taxable person.
- Upon request, interest on late VAT payment does not apply until 31st of December 2020
- Businesses must still submit VAT returns as normal and report the VAT due in the period
- Imports of protection like hygiene masks, disposable gloves …, intended for the cantons or the Confederation are exempt from customs duties between 10.April 2020 to 9 October 2020 without authorization but import Vat is still due. Swiss Authorities also announced a list with medical products, which are exempt from customs duties.
VAT taxes are being cut for small businesses, Extended tax filing deadline not in place yet
Extension of payment due date of customs duties up to 12 months for companies in designated COVID-19 disaster zones (e.g. Daegu). Simplified VAT taxpayers (with revenue less than KRW 48 million per year) will be exempt from VAT liability until the end of 2020.
The VAT exemption for simplified taxpayers is temporarily increased from KRW 30 million to KRW 48 million for 2020.
Small taxpayer (revenue up to KRW 48million) are exempted from charging or remitting VAT until 31 December 2020 on goods and services.
- Extension of 1st quarter VAT filing and payment for up to three months due to COVID-19 (case by case decision)
- Expanded tax support is provided for overseas companies that expand domestic operations
- The VAT exemption for simplified taxpayers (increased from KRW 30M to KRW 48M until end of 2020)
- 70% reduction of special consumption tax on automobile purchased between 1 March – 30 June 2020
- Entertainment expense deductions 2020 increased to 0.35% of revenue if revenue does not exceed KRW 10 B, and 0.25% if revenue does not exceed KRW 50 B, and 0.06% if revenue exceed KRW 50 B.
- Extension of payment due date of customs duties up to 12 months for companies in designated COVID-19 disaster zones
- For small sole proprietors temporary reduction in VAT
A four billion fund for the economy will include tax breaks however no specific details have been published in relation to VAT
The Council of the Eurasian Economic Union approved the decision to nullify or reduce import duties on medical products used to prevent and control the spread of Covid 19. A specific list of goods is to be agreed by the Union member-countries. Limitations on exports of certain goods.
The president, in an appeal to Russian citizens in connection with the coronavirus pandemic, announced a decision to grant small and medium-sized businesses deferred tax on all taxes, except VAT, for next six months, no further updates in relation to VAT.
Vat reduction in consideration.
- Russia announced list of goods exempted from import customs duties from 1.April (mask, disinfection, medical devices…)
- The sale of medical supplies by COVID-19 pandemic is subject to a reduced VAT rate of 10 %.The list of these medical is approved by R. Government
- Russian Government announced tax measures due to Covid19, these measures include six month payment deferral on all taxes except VAT
Extensions cannot be granted for GST returns, but any penalties for late filing may be remitted.
Businesses registered for GST can now apply for a payment holiday backdated to 14th Feb 2020 but must be able to clearly link any difficulties in payment to problems caused by the pandemic
Extensions can’t be granted for GST and PAYE returns, but any penalties for late filing may be remitted. Under limited circumstances penalties for late payments incurred due to the effects of the COVID-19 may also be remitted. You can set up an instalment arrangement and direct debit payments.
Extended the time frame for filing Basic Compliance Packages (BCPs). The new due date is 30 June 2020. No further updates in relation to GST
- The Government is freezing charges at the border to help export and import businesses from impact by COVID-19. A new fee regime for exporters and importers due to come in on 1st of June and has been put on hold for at least 12 months.
- Companies with difficulty paying outstanding taxes may set up an instalment arrangement
- Extensions cannot be granted for GST and PAYE returns, but any penalties for late filing may be remitted.
- Under limited circumstances penalties for late payments incurred due to the effects of the COVID-19 may be remitted.
- Proposed to speed up GST refund process
A number of indirect tax measures are being put in place. Cancellation of the requirement for 50000Dhs bank guarantee, fees imposed on submitting customs docs will be reduced by 90% & commercial licences can be renewed without the mandatory renewal of lease contracts.
Update announced 17/03/3030: Part of the stimulus package released by the Dubai Government includes a refund of 20% on the customs duties paid for locally sold imported goods, cancellation of bank guarantee required to clear goods, and a 90% reduction in customs clearance fees.
The Federal Tax Authority has issued a directive, on an exceptional basis, to provide an alternative date of 28 May 2020 as the deadline for submitting VAT returns and settling payable tax for the tax periods ended 31 March 2020, allowing registered businesses time to fulfil their tax obligations before the deadline.
- Changed deadline for submitting VAT returns from 28. April 2020 to 28.May 20220
- Vat payment has to be received by the Tax Authorities at the same time
- Cancellation of requirement for 50000Dhs bank guarantee
- Fees imposed on submitting customs documents will be reduced by 90%
- Commercial licences can be renewed without the mandatory renewal of lease contracts
- Dubai customs reimburse 1% of the duties imposed on imported goods sold locally in the UAE. These are subject to a customs duty of 5% and were processed in the period from March 15, 2020 to June 30, 2020 in accordance with the import declarations
HMRC has proposed to set up a support line to support businesses concerned about meeting payment deadlines so that payment terms can be renegotiated.
Updated announced 19/03/2020: In the recent UK Budget, the Chancellor set out a £12 billion package of temporary measures to support public services, individuals and businesses through the economic disruption caused by COVID-19.
No VAT related measures applicable yet.
The government has announced a three-month deferral for VAT payments until end June for all UK businesses. The deferral applies from 20 March 20 to 30 June 20 and no application is necessary. Businesses will not need to make a VAT payment during this period. The government will continue to pay refunds and reclaims.
The measure appears only available to UK businesses “All UK businesses are eligible”. Foreign (non-resident) UK VAT registered businesses must still pay their VAT liability by the regular deadline of 7th of the second month following the reporting quarter or month. However, some non-resident businesses have been told directly by HMRC that they are entitled to the relief.
Both resident and non-resident businesses that are registered for UK VAT will have an option to defer their VAT payment due for the period 20 March – 30 June 2020 until the 31st of March 2021 (at the latest). Businesses paying by direct debit should cancel their direct debit orders with their banks. Note that these measures do not cover VAT MOSS payments.
Businesses that have been affected by the COVID-19 pandemic and are seeking to make use of the VAT deferral have been urged to cancel their direct debits as soon as they can.
|Country||VAT rate change|
|Austria||Protective masks – 0% till August 1, 2020|
|France||Masks – 5.5%|
|Greece||6% VAT rate for products needed to protect against the virus (eg. hygienic masks, gloves, antiseptic solutions, etc.) till Dec 31, 2020|
|Ireland||Domestic Supply of Personal Protective Equipment – 0%|
|Poland||0% VAT rate applicable on medical devices and medicinal products such as disinfectants, masks and protective suits|
|Norway||Reduction of the VAT rate of 12% (applicable on passenger transport, cultural events etc.) to 6%. from 1 April until 31 October 2020|
- VAT removed on e-publications came into effect on 1st of May. As a result of the COVID-19 lockdown were decided to bring the zero-rating forward to 1 May instead 1st of December 2020
- between 1st of May and 31st of July 2020 personal protective equipment will be zero-rated
- Temporary changes to the VAT payments due between 20 March 2020 and 30 June 2020 to help businesses manage their cash flow.
- If you’re a UK VAT registered business and have a VAT payment due between 20 March 2020 and 30 June 2020, you have the option to: defer the payment until a later date or pay the VAT due as normal
- The deferral does not cover payments for VAT MOSS or import VAT
- HMRC will not charge interest or penalties on any amount deferred as result of the Chancellor’s announcement.
- HMRC will continue to process VAT reclaims and refundsas normal and most repayments are paid within 5 working days.
- Repayments will not be offset against any deferred VAT, but they will be offset against existing debts.
No official update from Tax Authorities
South African Revenue Service is that taxpayers need to continue to comply with their tax obligations, but that there may be several unusual value-added tax (VAT) consequences to be considered.
COVID-19 measures: Government Gazette announced list with several goods which are exempt from VAT on importation. https://www.sars.gov.za/AllDocs/LegalDoclib/SecLegis/LAPD-LSec-COVID19-Reg-2020-003%20-%20VAT%20412.11%20Mapping.pdf
The VAT exemption is only valid for direct importations and not to be cleared into bond or warehousing.
- Upon request, Businesses that are incapable of making payment due to the COVID-19 disaster, may apply to defer tax payments without incurring penalties by contacting the SARS Gov.
- Government announced list with several goods which are exempt from VAT on importation during Covid 19 (under certain conditions, there is also a rebate for goods concerned available)
- The VAT exemption is only valid for direct importations and not to be cleared into bond or warehousing.
- No extension of filing Vat returns (small vendors can temporarily file monthly instead bi monthly for quicker input Vat refund)
- Consumption tax payments for alcoholic beverages and tobacco products due in May 2020 and June 2020 will be deferred for companies subject to excise duty by 90 days.
Canada is open to relaxing tax payment rules for companies hit by the effects of the novel coronavirus. The Canada Revenue Agency could arrange flexible payment arrangements for businesses, however, no specific details have been published yet.
The CRA will not contact any small or medium-sized businesses to initiate any postassessment GST/HST or income tax audits for the next four weeks. For the majority of businesses, the CRA will temporarily suspend audit interaction with taxpayers and representatives.
The Canada Revenue Agency will not contact any small or medium (SME) businesses to initiate any post-assessment GST/HST or Income Tax audits for the next four weeks. For the vast majority of businesses, the Canada Revenue Agency will temporarily suspend audit interaction with taxpayers and representatives.
The Liaison Officer service offers help to owners of small businesses to understand their tax obligations. Traditionally available in-person, this service is now available over the phone and will be customizing information during these challenging times by ensuring small businesses are aware of any changes such as filing and payment deadlines, proactive relief measures, etc
There are additional updates regarding extended tax filing and payment deadlines in different provinces like BC, Manitoba, Alberta and for different taxes.
Waiving tariffs on certain medical goods, including PPE such as masks and gloves. This will reduce the cost of imported PPE for Canadians
- The CRA will not contact small or medium-sized companies until further notice to initiate a GST / HST.
- GST/HST return filing should be on time, if the filing is not made on time, no penalties will apply until 30th of June 2020. (it belongs to following Provinces: Ontario, Newfoundland, Labrador, Nova Scotia, New Brunswick and Prince Edward Island)
- Quebec will apply the same measures as above for QST
- British Columbia extend filing and payment deadline for a number of taxes including Provincial Sales Tax until 30 September 2020.
- Saskatchewan announced, PST returns must be filed monthly/quarterly, payments may defer, no requirement to submit a request for relief from penalty and interest charges for mentioned returns but payment arrangement must be made upon request.
- Manitoba has extended the April and May filing deadlines for up to 2 month for Companies with monthly remittances of no more than CAD 10,000. A request to waive penalties and interest may submitted to MT Authorities
- This extension applies to all registrants, including non-residents
No official update from Tax Authorities
VAT returns and payments for the first quarter will be extended for three months
- Saudi Arabia’s state news agency said VAT will increase from 5% to 15% as of 1st of July 2020
The Kingdom of Saudi Arabia (KSA) has announced a number of measures to assist businesses overcome the difficulties arising from the COVID-19 pandemic including VAT:
- Extension of Filing VAT return for 3 month
- This will also defer the payment dates of these taxes to GZAT
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Temporary deferment of Value Added Tax payments for the import of goods by a tax registrant for its economic activities that is payable to the Customs Authority in accordance with the applicable VAT Return for the period which relates to the import
- Saudi Arabia’s state news agency said VAT will increase from 5% to 15% as of 1st of July 2020
- Extension of Filing VAT return for 3 month.
- Temporary deferment of Value Added Tax payments for the import of goods by a tax registrant for its economic activities that is payable to the Customs Authority in accordance with the applicable VAT Return for the period which relates to the import
- KSA Customs has postponed import duties by 30 days against the submission of a bank guarantee for the next three months and has set the necessary criteria for extending the deferral period for the most affected activities as required.
To provide financial support to sole traders during the Coronavirus (COVID-19) outbreak, the Ministry of Finance and the State Taxation Administration (SAT) jointly issued a circular (Circular  No.13) exempting small-scale taxpayers from VAT in the province Hubei (of which Wuhan is the capital) and reducing the VAT from 3% to 1% for all small-scale VAT taxpayers in other provinces and cities in the period from 1 March to 31 May 2020.
Subsequently, on 29 February 2020, the SAT announced more detailed tax measures for the implementation of the special tax reliefs (SAT Public Notice  No.5). According to the Notice, small-scale taxpayers may issue VAT invoices with 1% VAT from 1 March to 31 May 2020.
In the same period, the tax authorities are also urged not to withhold individual income tax from sole traders and partnership enterprises located in the Hubei province when issuing VAT invoices for cargo transportation services (normally, a prepayment of individual income tax would have been collected when VAT invoices on cargo transportation services are issued).
Indirect Tax Measures – Manufacturers of key materials for epidemic prevention and control may apply for a full refund of the overpaid VAT.
Income derived by taxpayers from the provision of public transport, as well as express delivery services involving resident necessities, shall be exempt from VAT.
During period 1st March to 31 May – May 31, 2020 for taxable sales, the income of small-scale VAT taxpayers in Hubei Province to which a levy rate of 3% is applicable is exempted from VAT, and the pre-payment VAT on pre-payment VAT items subject to a pre-levy rate of 3% is suspended except for those in Hubei Province, small-scale VAT payers in other provinces, autonomous regions and centrally-administered municipalities may pay VAT at the reduced levy rate of 1% for their taxable sales revenue subject to a levy rate of 3%; they may also prepay VAT at the reduced pre-levy rate of 1% for their pre-payment VAT items subject to a pre-levy rate of 3%.
Imported materials donated for epidemic prevention are exempted from Import Customs Duty, import VAT and Consumption Tax. Materials imported by the competent health department directly used for epidemic prevention are exempted from Import Customs Duty.
- Measures for the Refund of Value-added Tax on Made-in-China Equipment Purchased by Research and Development Institutions.
- Businesses in China, including foreign-invested enterprises (FIEs), can leverage these special policies to overcome the difficulties caused by COVID-19.
- Exempt VAT and excise duty on cross-border e-commerce pilot zones
- Waiver of interest of late tax payment on domestic sales from bonded materials
- Deferral of VAT payment upon request (case-by-case review).
China has extended all Covid-19 VAT measures from June 2020 until the end of December 2020.
Donations made in cash or in kind to help combat COVID-19 are exempt from VAT and other consumption taxes.
The consumption tax rate for restaurants, cafeterias, and other similar food and beverage services is reduced from 8% to 0% until 31 December 2020.
The Mexican Congress have proposed to temporarily reduce the VAT rate from 16 to 10% to provide some relief from COVID-19.
The proposal has not been finalised yet. If the proposal is approved, the reduction in VAT will be in place until 31 December 2020.
The Indian government has further extended the filing and payment deadlines for income tax and goods and services tax (GST) returns and reports or statements in view of the COVID-19 pandemic.
The deadline for businesses to file their annual GST returns and reconciliation statements for the financial year 2018 – 2019, the date has been extended from 31 October 2020 to 31 December 2020.
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*This article is correct at the time of publication. Updates will be included as they are published by tax authorities.*