Belgium: The Belgium tax office has confirmed that the VAT rate on catering, restaurant and cafe services will be cut from 21% to 6% during the period of 8 June 2020 to 31 December 2020.
The Belgium tax office has confirmed that the VAT rate on catering, restaurant and cafe services will be cut from 21% to 6% during the period of 8 June 2020 to 31 December 2020.
The Bulgarian tax office has confirmed that businesses importing certain medical supplies used during the Coronavirus outbreak can import these goods without paying import duty and VAT.
The Bulgarian tax authorities are proposing a cut in the VAT rate for e-books and catering services from 20% to 9%. If accepted, this will be introduced on 1 July 2020.
The Czech tax authorities have passed urgent VAT measures that will:
- Allow businesses to apply for five-day delays on their VAT payments in the country.
- Delay the submission deadline for control statements until 1 July 2020.
- Automatically waive penalties up to a value of CZK 1,000, issued for the late filing of control statements during the period 1 March to 31 July 2020.
- Allow businesses to apply to waiver any other penalties incurred for the late submission of either the control statements or the VAT return as a result of the coronavirus.
The Cypriot tax authorities have confirmed that the VAT rate on the supply of accommodation and hospitality services will be cut from 9% to 5% during the period of 1 July 2020 to 10 January 2021.
On 17 March 2020, the Danish parliament announced:
- Monthly VAT payments due for VAT return periods between March and May 2020 will be postponed for one month.
- Quarterly VAT returns for the first and second quarter of 2020 can be merged into one VAT submission/payment due on 1 September 2020.
- Biannual VAT returns for the first and second half of 2020 can be merged into one VAT return due on 1 March 2021.
These changes apply to both non-established and established businesses, and it is still possible to submit VAT returns by the original deadline if companies are in a VAT refundable position.
The Finnish tax office has passed urgent VAT measures that will allow businesses affected by the Coronavirus to apply:
- For late payment penalties and interest to be waived on overdue VAT payments.
- For VAT payment postponements and payment plans, where they are experiencing cash flow difficulties.
The French tax office is now offering the possibility for businesses affected by the Coronavirus outbreak to adjust their VAT payments. This applies to VAT payments owed for the next two months’ VAT returns:
- March 2020 VAT return due on 19 April 2020 – Businesses can apply to pay 80% of the VAT owed on the previously submitted February 2020 VAT return, instead of the amount owed on the March 2020 return if this cannot be calculated. Severely affected businesses who can demonstrate a drop of 50% or more in revenue can apply for a further discount and only pay 50% of the VAT paid on the February 2020 VAT return.
- April 2020 VAT return due on 19 May – Businesses can apply for the above discounts to be applied, and again the calculations will be based on the February 2020 VAT return.
Submit adjustment returns to report the actual VAT due for the March and April periods.
The Greek government introduced the following measures:
- Special extensions of the deadline for VAT payments.
- Suspension of the collection of VAT debts for businesses affected by the Coronavirus pandemic.
The Irish Revenue has announced that:
- No interest or penalties will be applied on late VAT payments made by small businesses (with an annual turnover of up to €3million) relating to the January-February VAT return. Larger companies may also be able to avoid penalties for the same period but will have to make an application to the Irish tax office to be considered.
- No enforced debt collection will be carried out during the Coronavirus crisis.
- Businesses severely affected by the crisis can contact them to negotiate payment terms of any VAT amounts due.
The Italian Ministry of Finance announced the following measure for resident businesses:
- All VAT payments due by 16 March 2020 will be postponed to 20 March 2020.
- Small businesses with an annual turnover of less than €2million will be able to postpone their VAT payments until 31 May 2020.
- All annual VAT declarations could be postponed until the 31 May 2020.
- Businesses can apply for a five-month payment plan.
Non-resident VAT payers have not been provided with delays on VAT returns or payments.
The Portuguese tax authorities have introduced a scheme for businesses with a turnover of less than €10million per annum. This scheme will allow businesses to apply to make payments of their monthly February and March VAT returns, or their second-quarter VAT return (April to June 2020) in either:
- Three-monthly payments without interest charge; or
- Six-monthly payments, including late interest on the final three instalments.
The Slovakian Ministry of Finance proposed the following measures:
- Extension of the filing deadline for VAT returns for all taxpayers from 25 March 2020 to 30 June 2020.
- Extension of deadline for VAT payments.
- Exemption from penalties for late payments of taxes.
The Spanish government announced that:
- All tax office deadlines relating to enquiries, information requests, appeals and audits will be postponed until further notice. Delays will also apply to VAT and company number registrations in the country.
- Small to medium-sized businesses with a turnover of up to €6million will be able to apply for deferral of VAT return payments owed between 13 March and 30 May 2020. These can be deferred for up to six months with the first three months being interest-free.
The Swiss tax authorities will allow businesses affected by the Coronavirus to apply for:
- Deferral of their VAT payments with no interest charged.
- Late penalty interest relief for VAT and customs duty payments.
HMRC prepared a questionnaire for movements of goods between GB and NI. The questionnaire you can find here. We would appreciate if you would fill in the questionnaire and send it to: [email protected].
The HMRC Making Tax Digital Policy team explained for box 8 of the UK VAT return (sales of goods to customers in other EU Member States) that after 1 January 2021 and this box would be used for reporting the movements of goods between GB and Northern Ireland. For taxpayers on the calendar quarter VAT stagger, this will be a clean change on 1 January, but for those taxpayers that report intra EU movements of goods in Box 8 and are have VAT quarters that span the date, there will be some changes needed to the accounting software so that the EU movements don’t get reported in box 8.
The above information was kindly provided by:
- Fiscal Solutions (UK), www.fiscalsolutions.co.uk; contact: [email protected]
- Ruth Corkin from The VAT Practitioners Group (UK); contact: [email protected]