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European VAT News

European VAT News – August 2020

By August 24, 2020July 10th, 2021No Comments

Austria: In order to mitigate the economic effects of the Covid-19 pandemic, the reduced VAT rate of 5% applies, from 1 July until 31 December 2020, to gastronomy, culture and publishing sectors.

Austria

In order to mitigate the economic effects of the Covid-19 pandemic, the reduced VAT rate of 5% applies, from 1 July until 31 December 2020, to gastronomy, culture and publishing sectors.

 

Belgium

In order to mitigate the effects of the Covid-19 pandemic, the Belgium parliament adopted Bill No. 55K139000, in which is foreseen, among other measures, that the advance payment that would be due on December 2020, by taxable persons filling quarterly VAT returns before 1 October 2020 and filling monthly VAT returns, is not required this year.

 

Denmark

Denmark was authorized by the Council of the European Union to continue to apply until 31 December 2023 a flat-rate scheme for private use of business cars.

 

Finland

According to Implementing Decision (EU) 2020/774 of 8 June 2020, Finland is authorized, from 1 January 2021 until 31 December 2024, to apply an annual turnover threshold of 15 000 EUR for exempting small companies from VAT.

 

Germany

In order to mitigate the effects of the Covid-19 crisis several measures were announced in Germany, such as the reduction of the standard and reduced VAT rate to 16% and to 5%, respectively, between 1 July and 31 December 2020.

 

Hungary

Hungary extended, as from 1 July 2020, the obligation to comply with the Online Invoice Reporting System to all invoices issued between domestic business partners, regardless of the VAT amount of the invoice.

 

To this extent, the invoices issued manually must be reported to the National Tax and Customs Administration, within 4 days or, in case the respective VAT amount is higher than 500 000 HUF, within 1 day. On the other hand, the invoices issued using an accounting software must be electronically reported in real time.

 

Due to the Covid-19 pandemic, it is foreseen a transitional period, applicable between 1 July and 30 September 2020, in which the Hungarian tax authorities will not apply any sanctions for the failure to comply with the reporting obligations mentioned above.

 

Italy

In order to mitigate the effects of the Covid-19 pandemic the Italian Tax Authorities extended, for certain taxpayers, the deadline for payment of the VAT due on 30 June 2020 to 20 July 2020. In this context, a 0.4% interest will apply to the payments made between 21 July and 20 August 2020.

 

Latvia

In the frame of the support measures implemented by Latvia to combat the Covid-19 pandemic crisis, it has been announced that until 31 December 2020, the tax authorities will refund the confirmed excess of input VAT to taxpayers within 30 days following the submission of the respective VAT return.

 

Norway

The zero VAT rate became applicable, as from 1 July 2020, to newspapers e-editions, which also includes digital versions that incorporates news, analysis, text and images.

 

All the above is subject to change at short notice so please check with Ryan VAT Systems for more details.

 

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