International VAT Rate Round Up: November 2020
VAT News Updates
10th November 2020: Ireland introduces VAT rates reductions for certain industries, along with changes in India, Greece and Romania.
From 1 November 2020 to 31 December 2021, the Irish VAT rate applying to certain goods and services, mainly in the tourism and hospitality sectors, will decrease from 13.5% to 9%.
This VAT rate reduction follows the standard rate reduction from 23% to 21% from 1 September 2020 to 28 February 2021.
The 13.5% VAT rate will apply to categories such as:
- Food and drink supplied in restaurants, hotels, cafés, takeaways and other catering establishments;
- Hotel and guesthouse accommodation;
- Admission to cinemas;
- Certain live theatrical or musical performances;
- Exhibitions and etc.;
- Printed matter consisting of brochures, leaflets and programmers;
- Hairdressing services; and
- Sale of printed newspapers, digital supplies of e-books and e-publications, and the provision of sporting facilities by profit-making bodies.
Covid-19 related VAT rate changes
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 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.
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.
Please see our detailed blog for more COVID-19 updates.
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