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VAT update re COVID-19

By March 23, 2020July 10th, 2021No Comments

The French members of the Board (Stephen Dale, Cyrille Konter and Emmanuel Cotessat) had a conference call with the French tax office for VAT refunds (13th directive and electronic portal claims only) earlier today (18 March)…

EC

Update on the Commission’s actions re COVID-19:

https://ec.europa.eu/info/live-work-travel-eu/health/coronavirus-response_en

 

OECD

OECD published the latest data on tax policy measures taken by governments so far in response to the coronavirus pandemic. Here you can download the table with the information. More information you can find here.

 

Australia

The Australian tax office (ATO) have passed urgent Goods and Services Tax (GST) measures that will allow businesses:

– In a regular GST refund position to apply to switch from quarterly to monthly filings to accelerate GST refunds.

– With cash flow difficulties to apply for deferred payment schedules with the ATO, as well as relief from late GST payments, penalties and interest liabilities.

The above information was provided by Fiscal Solutions (UK). Source; contact at: contact@fiscalsolutions.co.uk.

 

Austria

– taxpayers may apply for a deferral of VAT payments without interest assessment in case of liquidity shortage due to the Corona-crisis;

– VAT audits and comparable measures will be postponed;

– deadline for submission of the annual VAT return has been extended;

– deadline for submission of monthly or quarterly VAT returns, as the case may be, has not be extended, but there shall be no fines in case of late filing;

– deadlines for filing appeals and similar legal actions has been extended until 30 April 2020;

– tax relief measures have been also implemented for other taxes (e.g. reduction of prepayment for corporate income tax) and social security contributions.

The above information was kindly provided by Pichler Peter from LeitnerLeitner (Austria), contact: Peter.Pichler@leitnerleitner.com.

 

Belgium

The Belgian Tax Administration informed the IVA that due to the exceptional situation, they authorize the submitting of the refund applications by 30 September and the missing documents should be provided to them by 31/12/2020.

The Belgian Tax Administration accept exceptionally the sending of invoices and other documents by e-mail.

 

Bosnia-Herzegovina

– proposed extension of filing date for VAT return from 10th day to the end of the following month.

The above information was kindly provided by Pichler Peter from LeitnerLeitner (Austria), contact: Peter.Pichler@leitnerleitner.com

 

Bulgaria

The National Revenue Agency has recently clarified that, despite Covid-19 impact, the deadlines for submission of VAT returns as well as the payment of VAT due will not be extended.

Since measures concerning Covid-19 are rapidly changing, this article is for information purposes only. Any companies intending to act upon this article should first contact us for specific advice concerning these elements.

The above information was kindly provided by Ryan VAT Systems (France), www.vatsystems.eu; contact: news@vatsystems.eu.

 

Canada

The Canadian Revenue Agency announced that due to the Coronavirus crisis, they will suspend any ongoing investigations, assessments or audits with taxpayers and their agents.

Update: The following measures have been implemented:

– The Canadian Revenue Agency confirmed that all monthly and quarterly Goods & Services Tax (GST) returns and payments for the periods of March, April and May are postponed until 30 June 2020. There will be no penalties or late interest charged for these late filings and payments.

– Quebec Sales Tax (QST) filings and payments for March, April and May will be postponed until 30 June 2020. There will be no penalties or late interest charged.

– The province of Ontario has waived interest and fines on a range of Provincial Sales Tax (PST) until 31 August 2020. 

– The province of Manitoba has announced that small businesses may apply to postpone their retail sales tax payments by up to two months. 

– The Canadian province of British Columbia will allow businesses to apply to postpone filings and payments of Provincial Sales Tax (PST) owed from 23 March. 

Update: Saskatchewan is allowing monthly and quarterly Provincial Sales Tax (PST) payers to delay paying their February, March and April tax payments until 31 July. This is on an automatic basis with no application required. PST returns must still be submitted on time. 

The above information was provided by Fiscal Solutions (UK). Source; contact at: contact@fiscalsolutions.co.uk.

 

Croatia

– Taxpayers may apply for a deferral of VAT payment under following conditions:

– Previous year supplies do not exceed HRK 7,500,000 (i.e. EUR 1,000,000), excluding VAT;

– Not available to taxpayers applying cash-accounting scheme;

– Actual or estimated decline in revenue;

– Taxpayer substantiates that respective VAT liability is based on outstanding invoices or proves otherwisethat his liquidity has been (negatively) affected;

– Tax relief measures shall also apply to other taxes (e.g. income tax) and social security contributions.

The above information was kindly provided by Pichler Peter from LeitnerLeitner (Austria), contact: Peter.Pichler@leitnerleitner.com.

 

Czech Republic

– Taxpayers may apply for remission of late payment interest and penalties for late submission of VAT returns due to the Corona-crisis;

– Relief measures shall also apply to other taxes as well as social and healthcare security contributions.

The above information was kindly provided by Pichler Peter from LeitnerLeitner (Austria), contact: Peter.Pichler@leitnerleitner.com.
 

Denmark

As part of the Danish id package, businesses that settle VAT monthly 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. For further details, please follow the link (in English): https://skat.dk/skat.aspx?oid=16900&lang=us

The above information was provided by Essentia Global Services (UK); source: http://vatlife.co.uk/update-30-march-emergency-vat-measures-to-combat-covid-19/;  contact Marta Gałązka at: marta.galazka@essentiaglobalservices.com.

 

Estonia

Estonian Tax and Customs Board has decided not to change the deadline to submit the VAT refund applications for EU companies. They will allow exceptionally to receive copies of invoices later than the 30th of September and they will wait longer time than usual for some documents that they have requested additionally.

Estonian Tax and Customs Board has not prolonged the deadlines for non-EU companies. They refund the value added tax paid in Estonia only to the Norwegian, Swiss and Icelandic companies. Some companies have contacted them and have informed them about problems obtaining the required original invoices. In 2020 in general the Estonian Tax Administration will accept the copies of the invoices sent by email.  

 

The above information was kindly provided by the Estonian Tax Administration to the IVA.

 

Finland

According to the 13th Council Directive (86/560/EEC) article 3 Member States shall determine the arrangements for submitting applications, including the time limits for doing so etc. It is stated in the Finnish VAT Act article 150, that the application shall be made within six months from the end of the calendar year covering the period, to which the application relates. Unfortunately the Finnish Tax Administration cannot agree to a prolonging of the time limits when they are strictly stated in the national VAT Act.

Suggested alternative approaches:

1) Accepting electronic invoices sent as e-document supporting the physical (paper) application. Answer: Sending documents and applications is possible only by e-mail, because the Finnish Tax Administration has no electronic alternative where the applicant could safely register and make an application.

2) Accepting an “open” application and that the applicant would notify the Finnish Tax Administration that a claim will be made, such that a refund is registered which can later be supplemented with the claim value and the actual invoices (after the fact). Answer: See answer to suggestion number 1.

The above information was kindly provided to the IVA from the Finnish Tax Administration. The full reply you can read here.

 

France

On 29 April 2020 the IVA received a written confirmation from the French Tax Authorities that the deadline to file 13th Directive claims will be 30 September 2020. The official letter in French from the French Tax Administration can be found here. The English translation of the letter can be found here.

Information about the non-French established businesses is available here.

French Portal – please note that the French portal for the upload of claims under directive 2008/9/EC (8th Directive) will again accept XML files.

(Information from the French Tax authorities)

 

Germany

If you are submitting a VAT refund application to the BZSt for the first time (or if you submitted your last application before 1 July 2017), please also note the following:

The VAT refund application must be submitted electronically via the BZStOnline portal (BOP) of the BZSt. Before you can use the BOP, you must register once with the BZSt to use the BOP. Afterwards you must register with the BOP using the credentials that you have received. Details of the application procedure and registration can be found on the website of BZSt (https://www.bzst.de/).

Due to longer postal delivery times when sending access data abroad, registration for the BOP may take several weeks or months. To ensure that you can submit your application for an input tax refund to the BZSt within the application period, please remember to register for use of the BOP in good time.”

Submission after 30/06 under the following conditions :

∙            Submission of online application + sending original documents ASAP

∙            Brief explanation why submission until 30/06 was not possible

Submission of 13th directive claims after 30/09/2020:

∙            Submission of application + original documents ASAP (1 month latest after the omission of the obstacle)

∙            Meaningful reason why you could not meet the application deadline

The official source in German you can find here: https://www.bzst.de/DE/Unternehmen/Umsatzsteuer/Vorsteuerverguetung/UnternehmerDrittstaaten/unternehmerdrittstaaten_node.html#aktuelles. The unofficial translation which was kindly provided by Dr. Fabian Völkel from VAT4U GmbH (Germany) can be found here.

 

Greece

We would like to inform you that as it concerns the deadline of receiving  the VAT Refund applications, remains the 30th of September 2020 (date of post office). The deadline for receiving VAT Refund applications remains the 30th of September 2020 (date of post office). However, the Tax Administration confirmed that they will accept any invoices after the final date (30/09/ 2020), preferably, till the 31st of March 2021.

The Greek Tax Administration also confirmed that they may accept copies of the respective expenses in electronic format (e-invoices) and those will be attached to the (paper) application thereafter. Please take note of their email address: vatrefunds@aade.gr, where you should address all your enquiries or additional information. Should you send copies of invoices electronically, please make sure that you also attach scanned copy of the application so that we may easily trace the physical file. The e-file for applications to be submitted according to the 13th Council Directive along with guidance you can find here.

The above information was kindly provide by the Greek Tax Administration to the IVA.

 

Hungary

– There are so far no special relief regulations directly related to VAT;

– Taxpayers may apply for a deferral or payment in installments of VAT or other ongoing taxes (even without interest) just on the basis of the general rules. Liquidity shortage due to the Corona-crisis may constitute a sufficient reason to be eligible for a relief;

– Relief measures currently apply to certain industries only, mainly with the aim to keep personnel. A reduction of advance payments on corporate income tax and local business taxes can be also claimed on the basis of the general rules.

The above information was kindly provided by Pichler Peter from LeitnerLeitner (Austria), contact: Peter.Pichler@leitnerleitner.com.

 

Ireland 

Ireland suspends all VAT debt enforcement activities until further notice.

The above information was provided by Essentia Global Services (UK); source: http://vatlife.co.uk/update-30-march-emergency-vat-measures-to-combat-covid-19/;  contact Marta Gałązka at: marta.galazka@essentiaglobalservices.com.

 

Isle of Man

In order to mitigate the impact of Covid-19 crisis the Tax Administration clarified that, despite the filling of the VAT returns being required, the VAT payments due between 23 March and 30 June 2020 may be deferred, without the application of interest. In this context, the VAT deferred ought to be paid by 31 March 2021.

Since measures concerning Covid-19 are rapidly changing, this article is for information purposes only. Any companies intending to act upon this article should first contact us for specific advice concerning these elements.

The above information was kindly provided by Ryan VAT Systems (France), www.vatsystems.eu; contact: news@vatsystems.eu.

 

Italy

In Italy, tax relief and tax deferrals are being granted to SMEs. Currently, these regulations only apply to companies resident in Italy.

Italian companies are not required to fulfil their tax compliance duties (other than tax payments) in the period from 8.3.2020 to 31.5.2020 and will not be penalized if they catch up by 30.6.2020. For companies with an annual turnover, which does not exceed EUR 2 million, as well as for companies in the particularly affected regions of Bergamo, Cremona, Lodi and Piacenza, the VAT due in the period from 8.3.2020 to 31.5.2020 is also deferred without interest. As things stand at present, however, this relief only applies to companies domiciled in Italy. 

The above information was provided by KMLZ (Germany), source: https://www.kmlz.de/en/VAT/Newsletter_08_2020; contact Ronny Langer at: ronny.langer@kmlz.de.

 

Japan

Japan may be reconsidering the implementation of the consumption tax measures.

The above information was provided by Essentia Global Services (UK); source: http://vatlife.co.uk/update-30-march-emergency-vat-measures-to-combat-covid-19/;  contact Marta Gałązka at: marta.galazka@essentiaglobalservices.com.

 

Latvia

Please be informed that in accordance with the Cabinet Regulation No.1507 Procedures for Refunding Value Added Tax to a Registered Taxable Person of a Third Country or Third Territory (available at https://likumi.lv/ta/en/en/id/263375-procedures-for-refunding-value-added-tax-to-a-registered-taxable-person-of-a-third-country-or-third-territory) the deadline for submitting an application for VAT refund is September 30 of the calendar year following the refund period (hereinafter – the Regulation).  Respectively, the application has to be submitted by September 30 of the calendar year following the refund period. In case you need more time to provide all the necessary documents (invoices, VAT registration sertificates, payment documents, etc.) you have to specify the date when you will send the requested documents to the SRS of the Republic of Latvia in the accompanying letter/application. The deadline for adopting the decision regarding the submitted application is from 4 to 8 months from the day of receipt of the submission.

In case you are not able to submit the application by September 30 of the calendar year following the refund period,  in accordance with Section 46, 47, 48 of the Administrative Procedure Law (available at https://likumi.lv/ta/id/55567-administrativa-procesa-likums) procedural time period might be extended/renewed pursuant to the petition of a participant and proofs for reasons of extension/renewal in an administrative proceeding. Information on VAT refunds to third countries is available at https://www.vid.gov.lv/en/vat-refund-legal-persons-registered-third-countries. Information regarding any changes in the current procedure will be posted at the mentioned website of the State Revenue Service. Please keep track of up-to-date information.

The above information was kindly provided by the Lithuanian Tax Administration to the IVA

 

Lithuania

The Lithuanian Tax Administration informed the IVA  that they have considered issues regarding the postponement of the deadline for submission of VAT refund applications by taxable persons established outside the territory of the European Union.

The Minister of Finance of the Republic of Lithuania by Order No.1K-174 (of 11 June 2020) determined that in order to recover the VAT paid in the Republic of Lithuania during 2019, a taxable person established outside the territory of the European Union must submit an application (form FR0445) no later than 30 September 2020.

The above information was kindly provided by the Lithuanian Tax Administration to the IVA.

 

Luxembourg

Until further notice, no penalties are to be imposed for the late submission of tax returns. Furthermore, all tax credits up to EUR 10,000 are to be paid out immediately.

The above information was provided by KMLZ (Germany), source: https://www.kmlz.de/en/VAT/Newsletter_08_2020; contact Ronny Langer at: ronny.langer@kmlz.de.

 

Malta

The VAT due for March and April for companies in the hospitality and tourism business and in the manufacturing industry are to be deferred for an indefinite period of time without interest. 

The above information was provided by KMLZ (Germany), source: https://www.kmlz.de/en/VAT/Newsletter_08_2020; contact Ronny Langer at: ronny.langer@kmlz.de.

 

Monaco

The Monaco Tax Administration confirmed that for taxable persons established outside the European Union, the deadline for filing reimbursement requests for VAT payable under the year 2019 (requests known as the “13th Directive”) is postponed by three months and is now set for September 30, 2020 at the latest.

The above information was kindly provided by the Monaco Tax Administration.

 

Netherlands

The Dutch Tax Administration explained to the IVA that they cannot allow an extension for the submission deadline under the 13th Directive as this would put the non-EU claimants in better position than the EU claimants (8th directive) ex art. 3(2) 13th Directive. However, they would process the claims if they are received after the deadline within 5 years.

 

The above information was kindly provided by the Dutch Tax Administration to the IVA.

 

New Zealand

The New Zealand tax office has announced that there will be no penalties levied for the late filing of Goods and Service Tax (GST) returns until further notice. They also stated that companies severely affected by the Coronavirus outbreak can apply to cancel any late GST payment penalties received.

The above information was provided by Fiscal Solutions (UK). Source; contact at: contact@fiscalsolutions.co.uk.

 

Norway

VAT – postponed deadline for payment and change in rate: The deadline for submission of the VAT-return will remain the same (April 14th), while deadline for payment of due VAT (term 1/2020) is postponed until June 10th. There is no need to apply for deferment of VAT payments. The Norwegian Tax Authorities will temporarily not impose enforcement fines if the VAT-return arrives after the deadline (term 1 and 2 /2020).

NOTE: Although the Tax Authorities has stopped enforcement fines, they still encourage companies to deliver the VAT-return in time.

The reduced rate scheme will apply to passenger transport, accommodation, public broadcasting as well as access to cinema, sporting events, amusement parks and adventure centers. The rate of low VAT changes from 12 % to 7 % from April 1th to October 31th.

Postponed deadline for payment of advance tax: All those required to make their first payment of advance tax on March 15th will have their deadline postponed until May 1st. There is no need to apply for a postponed deadline. Payment of advance tax for companies: second term April 15th: The deadline is postponed / will be granted access to later payment.

Employer’s tax: The payment of arbeidsgiveravgift (employer’s tax) will be reduced by 4 percentage points for the first term (2 moths). Deadline for payment of employer’s tax 2nd term is postponed from May 15th to August 15th.

NOTE: The tax authorities will get back with more information regarding this. We will keep you informed.

Monthly salary report: Due to the consequences the corona virus has for many employers, enforcement fines are temporarily stopped. This means that employers will not be sanctioned if the A-melding (Monthly salary report) arrives after the deadline. Initially, the compulsory stops for a-notification with delivery deadline on March 5th. The deadline for reporting A-melding will still be the 5th of each month. If the 5th is a weekend or public holiday, the deadline is the first business day after. It is important that the A-melding is delivered.

Foreigners on assignment in Norway: Many European countries have closed their borders. Foreign companies who has assignment in Norway, can be granted entry permission and approval to work on ongoing projects in Norway. This must however be applied to the relevant municipality, and the country you arrive from will decide whether you must go in quarantine or not.

The above information was kindly provided by Leif Plener from Momspartner (Norway), contact: leif@momspartner.com.

 

Poland

The special procedure VAT-Refund has been regulated in Council Directive 2008/9 / EC of February 12, 2008 determining comprehensive rules for value added tax, provided in Directive 2006/112 / EC, taxable persons not established in data transfer transactions but treating established in another group of operations. In art. 15 of Directive 2008/9/WE September 30 has been set as a day until when  applications for VAT refund in the special procedure should be submitted.

In the Polish legislation, the deadline for submitting an application for a VAT refund under the special VAT-Refund procedure was specified by September 30 of the year following the tax year to which the application relates. Due to the current legislation in Poland, it is not possible to submit a legally effective application for a tax refund under the VAT-Refund procedure after exceeding the strictly defined deadline, i.e. after September 30.

In Poland, tax refunds to entities from third countries are made on the basis of the rule of reciprocity, that currently only 4 countries meet: Iceland, Macedonia, Norway and Switzerland. This means that entities based in the United States of America are not eligible for a VAT refund under the VAT-Refund procedure.

The above information was kindly provided to the IVA by the Department of Tax Collection of the Ministry of Finance in Poland.

 

Portugal

Refund for invoices for the year 2019 can be requested until September 30, 2020. The request is only considered duly made when all the conditions provided for in article 18 and following of Decree law 186/2009 of 12 August are fulfilled. The Decree law 186/2009 can be found here.

However, if the application is submitted and documents are missing, the services will request them from the applicant’s representative by letter.

 

The above information was kindly provided by the Portuguese Tax Administration for the IVA.

 

Romania

The deadline for filing the tax return for February 2020 has been extended by one month, until 25.4.2020. All tax audits and enforcement procedures are temporarily suspended. Applications for VAT refunds, on which decisions have already been made, will be paid out in March 2020. Work is also being carried out on a general acceleration of the input tax refund procedure. In addition, no late payment surcharges or interest will be levied for tax debts due as from 21.3.2020 if they are paid late.

The above information was provided by KMLZ (Germany), source: https://www.kmlz.de/en/VAT/Newsletter_08_2020; contact Ronny Langer at: ronny.langer@kmlz.de.

 

Serbia

Serbia has extended their deadline to the 30th of September 2020. The link for the official confirmation is available here.

 

Slovakia

A foreign person from a third country is entitled to a refund of the tax charged on goods and services supplied by VAT registered entities in Slovakia, as well as a refund of the tax charged on the importing of goods in Slovakia. The claiming period for tax refund applications is a calendar year, and they must be submitted within the deadline stipulated in section 57(1) of the Slovakian VAT Act, i.e. no later than 30 June of the calendar year following the calendar year claiming period of the tax refund application.

Foreign persons from third countries must provide the following supporting documents with their tax refund applications:

(a) Original invoices issued by the VAT registered entities in Slovakia, on which the tax amounts are stated in euros. In the case of imported goods, the relevant import documents, and proof of payment of the import tax.

(b) Certificate issued by the tax authority of the country in which the applicant is based. The certificate must indicate the address of the applicant’s registered office, place of business, establishment, domicile, or habitual residence, and it must confirm that the applicant is registered for VAT or a similar sales tax. The certificate cannot be older than one year.

The Bratislava Tax Office decides on a tax refund application within six months from the date the application is submitted.

If foreign persons from third countries do not apply for a tax refund by 30 June 2020 for the year 2019 and the state of emergency is not cancelled by this date (thereby not ending the pandemic period), the Slovakian Act No. 62/2020 Coll. will also then apply to those foreign persons on whom the Slovakian VAT Act imposes certain obligations and confers certain rights. Under the provisions of section 4 of Slovakian Act No. 67/2020 Coll., a deadline that was missed during the pandemic period will be extended if the applicant carries out the relevant action no later than the end of the calendar month following the end of the pandemic period. However, this does not apply to the filing of tax returns, audit reports and summary statements, and the settlement of taxes and advance tax payments.

The above information was kindly provided by the Slovakian Tax Administration to the IVA. The full original reply in Slovak can be found here. The unofficial English translation of this reply can be found here.

Slovenia

Slovenia has not adopted any amendments to VAT legislation based on which the forthcoming June deadline for 13th Directive applications would be extended. If any changes as regards VAT occur, they will be available on the Tax Administration’s website here.

Taxable persons established in a non-EU Member State file their VAT refund claims in Slovenia via the eDavki electronic portal by using the form DDV-VTD. Before filing their claims, applicants must obtain a VAT identification number and a qualified digital certificate to access the Financial Administration’s electronic eDavki system. 

Taxable persons may attach copies of invoices to their claims on the basis of which a VAT refund is claimed in Slovenia and an authorisation for representation if they are represented by an authorised person. The maximum size of the attached documents shall not exceed 5 Mb. The permitted formats of attachments are pdf, jpeg, tiff and zip. It is recommended that copies should be made and saved in a file in advance since the attachment should be made to the claim itself and not sent separately as own document.

The full guidance for Covid-19 time can be found in this file and on the Tax Administration’s website.

The above information was kindly provided to the IVA by the Slovenian Tax Administration.

 

Spain

For all Spanish VAT returns due in the period 13.03.2020 until 30.05.2020, an extension of the deadline for submission may be requested from the Spanish tax authorities using a special form. The extension of time will be granted for a period of six months. However, this extension cannot be requested by large companies (annual turnover exceeding EUR 6 million) or if the VAT due on the return exceeds EUR 30,000.

Deadlines for the submission of tax returns remain unchanged. However, if this results in payment charges that cannot be paid, a deferral can be requested. Such deferrals will be granted for a period of up to six months. However, a deferral cannot be granted to companies whose annual turnover exceeds EUR 6 million or if the payment burden for the respective declaration exceeds EUR 30,000.

The above information was provided by KMLZ (Germany), source: https://www.kmlz.de/en/VAT/Newsletter_08_2020; contact Ronny Langer at: ronny.langer@kmlz.de.

 

Sweden

The Swedish Tax Agency´s direction has decided that the deadline for the period 2019 will not be extended and is still 30 June 2020. The Swedish Tax Agency will however consider applications sent by e-mail as submitted on time if they are received June 30th at the latest and are made on the form SKV 5801. A request for the original signed application and other documents will be sent to you. The claim must be supported by original documents including invoices before being dealt with by the Swedish Tax Agency.

Digitally signed power of attorneys are generally accepted. However, the Tax Administration reserves the right to, in the individual case, require the digitally signed power of attorneys are supported by additional documentation. Thus, each case is seen individually.

The above information was kindly provided to the IVA by the Swedish Tax Administration.
 

Switzerland

The application deadline in Switzerland expires on 30 June following respective calendar year. This deadline will not be adjusted in view of the Corona crisis. This means that applicant companies must submit their application for 2019 before 30 June 2020.

The above information was provided by the Swiss Tax Administration to the IVA. The full reply addressed to the IVA can be found here.

 

Turkey

The tax authorities have announced that the outbreak of the coronavirus will be classified as a force majeure and therefore, for certain economic sectors, the deadlines for the submission of tax returns for April, May and June will be extended until 27.7.2020 and tax payments due in these months will not be required to be paid until 6 months later.

The above information was provided by KMLZ (Germany), source: https://www.kmlz.de/en/VAT/Newsletter_08_2020; contact Ronny Langer at: ronny.langer@kmlz.de.

 

UK

Due to remote working for COVID-19, HMRC’s 13th Directive Refund Team has struggled with processing some claims for the July 2018-June 2019 claim year. It is possible that some claimants will not receive their VAT refunds before 30 September 2020.

In addition, HMRC Has recognised that some jurisdictions may find it difficult to obtain the Certificate of Status (“CoS”) for the 2019-2020 claim year. HMRC will accept claims without a CoS, but will put them on hold until 31 December 2020. Those that are still experiencing difficulties obtaining the CoS by October should contact HMRC.

https://www.gov.uk/government/publications/revenue-and-customs-brief-9-2020-delayed-vat-repayments-to-overseas-businesses/revenue-and-customs-brief-9-2020-delayed-vat-repayments-to-overseas-businesses

 

Revenue and Customs Brief 9 (2020): delayed VAT repayments to overseas businesses (13th Directive claims)

Due to the impact of COVID-19 on HMRC’s resourcing, HMRC has announced in its Revenue & Customs Brief 9 (2020) that it will be unable to meet the repayment deadline for the Overseas Refund Scheme for some non-EU business claims, historically known as 13th Directive claims. The affected claims are those within the prescribed year 1 July 2018 to 30 June 2019, submitted on or before 31 December 2019. HMRC anticipate that affected valid 2018-2019 claims will be paid by 30 September 2020.

The brief also sets out what businesses need to do if, due to COVID-19 impact, they are unable to obtain a certificate of status to accompany their claim for the claim year covering 1 July 2019 to 30 June 2020.

The above information was kindly provided by Steve Botham from Covertax Chartered Tax Advisers (UK). For more information please contact Steve Botham at: steve.botham@covertax.co.uk.

 

E publications

In this year’s Budget, the UK Chancellor announced that e-publications would be zero rated in time for Christmas with an effective date of 1 December 2020.

Today, HMRC has announced that the date has been brought forward to 1st May due to Coronavirus. Excluded are publications wholly or predominantly devoted to audio or video content, e-audio books and audio or video files. Links to HMRC guidance:

https://www.gov.uk/government/publications/vat-zero-rating-e-publications/vat-zero-rating-e-publications

https://www.gov.uk/government/publications/revenue-and-customs-brief-3-2020-vat-liability-of-supplies-of-electronic-publications/revenue-and-customs-brief-3-2020-vat-liability-of-supplies-of-electronic-publications

It has also announced a temporary reduction in the rate of VAT for PPE for the protection of frontline staff from Coronavirus from 1 May 2020- 31 July 2020, covering:

  • disposable gloves
  • disposable plastic aprons
  • disposable fluid-resistant coveralls or gowns
  • surgical masks – including fluid-resistant type IIR surgical masks
  • filtering face piece respirators
  • eye and face protection – including single or reusable full face visors or goggles

Links to the guidance:

https://www.gov.uk/government/publications/revenue-and-customs-brief-4-2020-temporary-vat-zero-rating-of-personal-protective-equipment-ppe/revenue-and-customs-brief-4-2020-temporary-vat-zero-rating-of-personal-protective-equipment-ppe

https://www.gov.uk/government/publications/vat-zero-rating-for-personal-protective-equipment

 

EY Tax Tracker

The regularly updated EY global tax policy tracker helps you monitor rapidly emerging government policy and stimulus responses to COVID-19. The full article can be found here.

The above information as kindly provided by Philippe Verclytte, Associate Partner Indirect Tax at EY Switzerland; contact: philippe.verclytte@ch.ey.com.