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European VAT News

European VAT News – May 2020

By May 28, 2020July 10th, 2021No Comments

Austria : In the context of the Covid-19 pandemic, the Austrian Ministry of Finance announced that from 13 April 2020 until 1 August 2020 the supplies and intracommunity acquisitions of respirator masks will be subject to a 0% VAT rate…

Austria

In the context of the Covid-19 pandemic, the Austrian Ministry of Finance announced that from 13 April 2020 until 1 August 2020 the supplies and intracommunity acquisitions of respirator masks will be subject to a 0% VAT rate.

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.

Bulgaria

In order to mitigate the effects of Covid-19 crisis, the National Revenue Agency announced the exemption from import VAT and customs duties of certain medical products required to combat the Covid-19 pandemic.

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.

 

Cyprus

As a result of Covid-19 crisis, the Cypriot Authorities have announced a deferral procedure of VAT payable amounts for the periods ending on 29 February, 31 March and 30 April 2020, until 10 November 2020 provided that some conditions are met, notably that (i) a taxable person submits the relevant VAT return within the statutory due date, (ii) the VAT payable amount for the above periods is settled by 10 November 2020 and (ii) the economic activity of the taxable person in accordance with its registration certificate is not one expressly excluded from receiving that benefit.

There will be no additional tax on VAT payable amounts, the annual interest will not apply and any criminal sanctions against taxable persons for failure of VAT payments and submission of tax returns will be suspended for the above-mentioned periods.

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.

 

Denmark

In order to improve the liquidity of small and medium enterprises, the Government has announced that the VAT payments made in March 2020 related to operations performed in the last quarter/semester of 2019 may be received back, as a loan without interest.

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.

 

Estonia

In order to mitigate the effects of Covid-19 crisis, the Estonian parliament adopted the bill which foresees the application of 9% VAT rate from 1 May 2020 to all books, educational literature and certain press publications.

 

Hungary

With the aim of reducing the impact of the Covid-19 crisis, the Hungarian government announced that refunds will be made within 30 days for small and medium-sized companies (instead of 75 days), provided that they are not considered risky taxpayers and will be made within 20 days for reliable taxpayers.

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.

 

Luxembourg

Luxembourg is the first EU member state to confirm it will open its VAT One-Stop-Shop registration portal for e-commerce from 1 October 2020. 

The One-Stop-Shop is part of the EU VAT e-commerce package reforms, which will be introduced on 1 January 2021 and will apply to all e-commerce companies that sell goods to EU consumers online. By using the One-Stop-Shop, these types of traders will be able to report and pay their EU VAT to all member states through one EU member states’ VAT online portal. This will prevent the need for these types of merchants to have to VAT register in every single country that they are selling goods to consumers.

The One-Stop-Shop (OSS) is an extension of the Mini One-Stop-Shop, introduced back in 2015 for the sales of electronic services.

Please note that the date of 1 January 2021 maybe pushed back to 1 July 2021 – see article below under News from the EU.

 

Romania

In the context of the Covid-19 crisis, several tax measures have been announced. Among others it is foreseen that VAT refunds will be done and, depending on a risk analysis, a tax audit may take place afterwards.

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

 

Spain

The Spanish tax authorities confirmed that the VAT rate on digital publications (e-books) has been reduced from 21% to 4%.

This change was implemented on 23 April 2020 and follows the EU Council’s proposal to allow EU member states to cut rates on electronic publications to match their printed equivalents.

 

The above information was kindly provided by:

Fiscal Solutions (UK), www.fiscalsolutions.co.uk; contact: contact@fiscalsolutions.co.uk

Ryan VAT Systems (France), www.vatsystems.eu; contact: news@vatsystems.eu