resources-post-top-bg Global VAT Updates relating to Covid-19

Global VAT Updates relating to Covid-19

VAT News Updates

Updated 8th April 2020: Local tax authorities have begun to communicate simplification and deferment measures to help affected businesses

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

Austria

Austria has announced a VAT payment & penalty deferment application scheme for companies directly affected by the virus.

20/03/2020

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.

25/03/2020

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 corona@bmf.gv.at, where you can apply for a deferral without interest if you can explain the situation is related to covid19 source.

01/04/2020

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.

Belgium

Companies in difficulty may request VAT payment delay. Measures in place until 30th June

20/03/2020

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 being20 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.

01/04/2020

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.

08/04/2020

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.

 

Bulgaria

No official update from Tax Authorities

25/03/2020

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.

Croatia

No official update from Tax Authorities

20/03/2020

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.

25/03/2020

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.

Cyprus

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

20/03/2020

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.

25/03/2020

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.

08/04/2020

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:

  1. The relevant VAT Return is submitted on time (40 days after the end of the relevant quarter) and
  2. 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.
  3. 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.

Czech Republic

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.

20/03/2020

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

25/03/2020

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).

01/04/2020

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.

08/04/2020

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/

Denmark

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

20/03/2020

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.

25/03/2020

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.

01/04/2020

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

08/04/2020

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.

Estonia

No official update from Tax Authorities

20/03/2020

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.

25/03/2020

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 covid19@mkm.ee.

08/04/2020

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.

Finland

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).

20/03/2020

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

25/03/2020

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.

01/04/2020

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.

08/04/2020

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.

France

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

25/03/2020

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

01/04/2020

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).

08/04/2020

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.

Germany

Enforcement measures and late-payment penalties will be waived for companies directly affected by the coronavirus until 31st Dec

20/03/2020

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.

25/03/2020

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.

01/04/2020

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.

08/04/2020

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.

Greece

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.

20/03/2020

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.

25/03/2020

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.

01/04/2020

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.

Hungary

No official update from Tax Authorities

25/03/2020

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.

08/04/2020

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).

Ireland

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

20/03/2020

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.

01/04/2020

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.

Italy

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

20/03/2020

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.

01/04/2020

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.

Latvia

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

25/03/2020

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.

08/04/2020

Article 6. 

(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.

Lithuania

The government to allow businesses to postpone tax payments or agree on tax payments scheduled without interests & penalties.

01/04/2020

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.

Luxembourg

No specific measures announced regarding VAT

20/03/2020

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.

01/04/2020

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.

08/04/2020

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

Malta

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.

20/03/2020

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.

08/04/2020

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.

The Netherlands

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.

25/03/2020

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.

01/04/2020

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.

08/04/2020

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.

Poland

The extension has been granted to delay SAF-T mandatory monthly filings until July 2020 & introduce Vat payment holiday.

01/04/2020

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.

Portugal

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

20/03/2020

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).

08/04/2020

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).

Romania

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.

20/03/2020

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.

25/03/2020

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.

08/04/2020

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.

Slovakia

No official update from Tax Authorities

20/03/2020

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 summarized 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.

25/03/2020

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.

01/04/2020

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.

08/04/2020

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.

Slovenia

No official update from Tax Authorities

08/04/2020

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.

Spain

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€

20/03/2020

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

25/03/2020

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.

Sweden

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.

20/03/2020

Government has announced a 300bn Swedish crown support package – no further update from the previous update

25/03/2020

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.

01/04/2020

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.

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Non-EU Countries

Australia

Opportunity to apply for GST payment delays and quicker credit repayments by switching from quarterly to monthly refunds

20/03/2020

Any companies who are experiencing cash flow difficulties can apply directly to the ATO for deferred payment schedules and relief from penalties and interests

25/03/2020

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.

01/04/2020

No update, ATO has to be contacted for case by case decision.

Norway

Tax offices closed without any update on the impact of coronavirus

20/03/2020

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.

25/03/2020

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.

01/04/2020

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

08/04/2020

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.

Japan

Considering the reduction of CT temporarily from 10 to 5% and delay filing deadlines and payments by 1 month until April.

20/03/2020

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.

25/03/2020

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

Switzerland

25/03/2020

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.

08/04/2020

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.

South Korea

VAT taxes are being cut for small businesses, Extended tax filing deadline not in place yet

01/04/2020

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.

08/04/2020

The VAT exemption for simplified taxpayers is temporarily increased from KRW 30 million to KRW 48 million for 2020.

Russia

A four billion fund for the economy will include tax breaks however no specific details have been published in relation to VAT

01/04/2020

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.

08/04/2020

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.

New Zealand

Extensions cannot be granted for GST returns, but any penalties for late filing may be remitted.

20/03/2020

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

25/03/2020

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.

08/04/2020

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

UAE

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.

20/03/2020

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.

United Kingdom

HMRC has proposed to set up a support line to support businesses concerned about meeting payment deadlines so that payment terms can be renegotiated.

20/03/2020

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.

25/03/2020

The government has announced a three-month deferral for VAT payments until end June for all UK businesses.  The deferral applies from 20 Mar20 to 30Jun20 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.

01/04/2020

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.

HMRC’s guidance: https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19

South Africa        

No official update from Tax Authorities

25/03/2020

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.

08/04/2020

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.

Canada  

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.

20/03/2020

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.

25/03/2020

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

01/04/2020

There are additional updates regarding extended tax filing and payment deadlines in different provinces like BC, Manitoba, Alberta and for different taxes.

KSA 

No official update from Tax Authorities

25/03/2020

VAT returns and payments for the first quarter will be extended for three months

China

25/03/2020

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 [2020] 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 [2020] 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 – i. 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.

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*This article is correct at the time of publication. Updates will be included as they are published by tax authorities.*

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