Live Updates: COVID-19-Related Tax Changes

Sovos
March 18, 2020

Originally posted: March 18, 2020, at 5:00 p.m. ET.
Last Updated: March 31, 2020, at 2:00 p.m. ET.


The impact of COVID-19 on businesses across the globe has been swift and severe.
 
In response, many federal, state and local governments are working to provide relief to both businesses and individual taxpayers impacted by the pandemic.
 
At Sovos, we are tracking these changes carefully and in real-time. We will be providing regular updates as changes become available. Please check back regularly to learn how evolving tax regulations may impact your reporting obligations.

Updated March 31, 2020 at 2:00 p.m.

Belgium

Taxable persons filing monthly VAT returns may file a quick VAT refund request for the period of February 2020 until 3 April 2020 via INTERVAT. The refund request will be approved if the all the following apply:
*the amount requested is at least EUR 245;
*all returns due for 2020 to date have been filed;
*the bank account number to which the refund will be made is known to the tax authority; and
*the refund will not be contested by creditors or the transfer of a bad debt relief claim.

If all the above conditions are met, the refund will be paid no later than 30 April 2020. Other VAT returns for February 2020, against which no refund request is being made, must be filed no later than 6 April 2020.

Additionally, the deadline for payment of VAT Special Declaration (Form 629) for the first calendar quarter of 2020 has been delayed from 20 April 2020 to 20 June 2020. Find more information here.


United Kingdom

The United Kingdom Making Tax Digital (UK MTD) for VAT digital links soft landing period is extended to 1 April 2021 for all taxpayers. Find more information here.


United States

Connecticut

Sales tax

The Connecticut Department of Revenue Services has extended sales tax filing deadlines as specified below:

Taxpayers that have $150,000 or less in annual sales tax liability qualify for an automatic extension of time to file and pay. Similarly, taxpayers that have $150,000 or less in annual room occupancy tax also qualify for this relief. A taxpayer that collects both sales tax and room occupancy tax must evaluate each tax separately to determine eligibility for relief.

For monthly sales tax and room occupancy tax filers: returns and payments due March 31, 2020, and April 30, 2020, are extended to May 31, 2020.

For quarterly sales tax and room occupancy tax filers: returns and payments due April 30, 2020, are extended to May, 31, 2020. Find more information here.

Massachusetts

Sales tax

The Massachusetts Department of Health has ordered the suspension of all municipal bag fees at grocery stores and pharmacies for the duration of the state of emergency or until rescinded by the Commissioner of Public Health. Find more information here.


Updated March 30, 2020 at 5:00 p.m.

Isle of Man

Businesses have the option to defer VAT payments due between March 23 and the end of June 2020. No business will have to make a VAT payment to customs and excise during this period. There will be no interest charged on the amounts deferred under this provision however; the deferred payments must be paid by 31 March 2021. Find more information here.


Portugal

The Portuguese Secretary for Fiscal Affairs decided that the public administration will also receive B2G invoices in PDF format. Until June, the PDF invoices will be considered legal B2G e-invoices. Find more information here.


United States

Avon, Colorado

Sales tax

The $0.10 paper bag fee is suspended effective immediately to help reduce the spread of COVID-19. The suspension of the $0.10 paper bag fee will continue until the state and county health orders related to the COVID-19 pandemic are lifted. Find more information here.

Connecticut

Sales tax

The 10 cent bag fee on single use plastic checkout bags is temporarily suspended effective immediately until May 15th, 2020.

Cook County, Illinois

In an effort to help businesses during the COVID-19 pandemic, Cook County Board President Toni Preckwinkle today announced an expansive series of measures waiving various County fines, fees and deferring tax collections. The filing date has been extended to May 1, 2020 for the February and March 2020 tax periods for New Motor Vehicle Tax, Alcoholic Beverage Tax, Amusement Tax, and Firearm and Firearm Ammunition Tax. Find more information here.


Updated March 27, 2020 at 2:00 p.m.

Canary Islands

The tax administration of the Canary Islands (ATC) postponed until June 1, 2020 the deadline for filing the first quarterly VAT return of 2020. Similar postponement applies to other excise and direct taxes. Finally, it should be mentioned that the ATC also clarified that the extension of the statute of limitation approved in Spain mainland in relation to deadlines to exercise appeals and other diligences, also applies in the Canary Islands. Find more information here.


Costa Rica

The lease of commercial properties during the months of April to June 2020 is now exempt. The change was based on the law 9830/2020 enacted by the congress. This law also states that for the VAT obligations corresponding to the months of March, April and May, the taxpayers may file the corresponding return but make the corresponding payment by December 31, 2020 without any fine, charge or interest fees. The same measure applies to the custom duties for imports and the local excise taxes corresponding to same period. Agricultural products are excluded from this measure in the case of the customs duties. Find more information here.


Dominican Republic

The tax administration of the Dominican Republic postponed until March 30, 2020 the deadline for filing the VAT return corresponding to the month of February. It will also allow the payment of the resulting tax in four installments equivalent to 25% of the total tax due, without the application of any penalties or interest. This decision comes along with other tax measures resulting from the declaration of the state of emergency. Find more information here.


Guatemala

The tax administration of Guatemala (SAT) suspended between March 24 to April 14, the counting of any deadline associated with tax obligations in that country. The resolution Resolución de Superintendencia Número SAT-DSI-280-2020 provides that during those days the tax administration will not calculate charges or interest fees to pending payments, and days will not be counted for the purpose of calculating the deadlines to appeal tax decisions. Depending on the evolution of the estate of emergency, this suspension may be extended. Find more information here.


Panama

There is temporary suspension of all the deadlines to exercise appeals, provide documents or information to the tax administration and other diligences. This suspension will apply for as long as the ministry of finance and the tax administration consider it necessary. Find more information here.


United Kingdom

VAT payments expected from 20th March through 30th June can be deferred until 31 March 2021 without additional interest. This includes payments on account. There are no changes to filing deadlines. Find more information here and here.


United States

Florida

Sales tax

The Department of Revenue will waive the imposition of penalty and accrual of interest for those taxpayers who collected any of the following taxes in February 2020, but were unable to meet the due date, if the taxes are reported and remitted by March 31, 2020: Sales and use tax (includes discretionary sales surtax), new tire fees, rental car surcharge, prepaid wireless E-911 fee and lead acid battery fees. Additionally, for the March 2020 reporting period, the Department will extend the due date to April 30, 2020 for taxpayers adversely affected by the outbreak. Taxpayers not adversely affected by the COVID-19 outbreak are required to file and remit on or before April 20, 2020. Find more information here.

Woodstock, Illinois

Sales tax

Woodstock suspended the 10 cent per bag fee for retail single-use paper and plastic bags. Find more information here.

Indiana

Sales tax

Subject to Department of Revenue (DOR) approval, manufacturers making donations of medicine, medical supplies, or other goods in furtherance of fighting the COVID-19 pandemic will not be subject to Indiana use tax on those items donated. Subject to DOR approval, groups or organizations that are not manufacturers who make any donation of medicine, medical supplies, or other goods will not incur a use tax obligation if sales tax had not been paid on such items. In either instance, such donations shall not be construed to be a retail transaction subject to sales or use tax. Donation of such items will not entitle the donor to a refund of any sales or use tax previously paid to the department or to a vendor. Find more information here.

Massachusetts

Sales tax

The Massachusetts Department of Health ordered the suspension of all municipal bag fees at grocery stores and pharmacies for the duration of the state of emergency or until rescinded by the Commissioner of Public Health. Find more information here.


March 26, 2020, at 5:00 p.m. ET.

Canada

Manitoba

Sales tax

Retail sales tax (RST) returns for small and medium businesses with monthly RST remittances of no more than $10,000 per month that would normally be due on April 20th and May 20th will now be due on June 22, 2020.

Businesses that file on a quarterly basis that have a due date of April 20, 2020 will now have the due date extended to June 22, 2020.

Businesses that qualify for the above filing extensions that were not able to file and remit their February sales tax return by the March 20th due date will not be assessed a late penalty and interest will not be applied until after June 22, 2020. Find more information here.


Chile

The Chilean tax administration (SII) issued the Resolution 33/2020 which enables VAT taxpayers allowed to issue paper dispatch guides, and who have previously stamped similar documents at the offices of SII, to request authorization of correlative numbers for this type of tax document, by logging in directly on the SII website using their tax ID and personal electronic key. The taxpayer will receive a certificate of authorization from the SII to use correlative numbers plus a validation code that should be exhibited by the taxpayer. During the state of emergency, this system will replace physical stamping (dry stamp) at the SII, currently required on each those document and its copies. This exception does not apply to taxpayers required to issue electronic dispatch guides. Find more information here.


Finland

State Treasury affirms that the Finnish government will receive B2G invoices not issued in accordance with the European standard until further notice. Find more information here.


Peru

The SUNAT postponed for certain taxpayers the deadline to start issuing invoices using the Electronic Emission Systems (SEE). The SUNAT issued the Resolution 060-2020, which postpones until May 30 2020, the obligation imposed on operators of credit/debit card companies, joint ventures and other irregular societies, to issue invoices using the SEE. These types of entities were originally required to start issuing electronic invoices via the SEE by March 30, 2020. But, because of the pandemic, the SUNAT extended this deadline until May 30, 2020. Find more information here.

The SUNAT issued a resolution postponing until the first week of April the obligation to submit the electronic ledgers of Sales and Income (Registro de Ventas e Ingresos) and the Ledger of Purchases (Registro de Compras) corresponding to the month of February 2020. The new deadline will fall in different days of the first week of April, depending on the last digit of the tax ID of the taxpayers required to comply with this mandate. The same regulation also postpones until April 15, 2020, “the deadlines for sending to SUNAT – directly or through the electronic services operator, as appropriate – the informative declarations and communications of the SEE that originally expired for said subjects from the publication of this resolution and until 31 March 2020, so that they are sent to the appropriate party”. Find more information here.

PENDING: The SUNAT (Peruvian tax administration) may postpone until April 30, 2020 the deadline for Validation Sheet 5 that is required to taxpayers subject to the electronic invoice mandate of that country.


Puerto Rico

Sales tax

The deadline for filing Sales tax returns have been extended for February, March, April and May 2020. February is due April 20, March is due May 20, April is due June 22, and May is due on July 10, 2020. Further, no penalties for non-compliance for biweekly sales tax payments for March, April, May, and June 2020 as long as the total due is paid with the filing of the monthly return for said periods. Find more information here.

Tax information reporting

The second extension on informative filings has been moved to May 15. Find more information here.


United States

Federal

Tax information reporting

The IRS extended the due date for IRA contributions, but not the filing due date. Find more information here.

Carbondale, Illinois

Sales tax

The city of Carbondale is extending the due dates for collection of the motor fuel, hotel/motel, food and beverage and package liquor taxes. The city of Carbondale will allow businesses a 30-day extension and waive any associated late fees. Find more information here.


United States

Texas

Sales tax

Texas Controller of Public Accounts

The Texas Comptrollers office is offering assistance, in the form of short-term payment agreements and, in most instances, waivers of penalties and interest, to businesses that are struggling to pay the full amount of sales taxes collected in February.

Please contact the Texas Comptrollers Enforcement Hotline at 800-252-8880 to learn about your options for remaining in compliance and avoiding interest and late fees on taxes due.

In addition, the Comptrollers office has a variety of online tools for businesses seeking assistance. Please see the COVID-19 emergency response webpage for access to online tools, tutorials and other resources for tax services, and to establish 24/7 online account access with Webfile.


United States

Washington

Shipping compliance

Proclamation 20-05 waives the penalties for failure to timely remit tax payments to the Washington State Liquor and Cannabis Board (LCB) until April 22. The waiver is made retroactive to the date of the governor’s declaration of a state of emergency on Feb. 29. Please note that this does not waive taxes due, but temporarily allows for a late payment without assessing automatic, statute-directed penalties.
To be eligible for deferment, please:

Continue to submit sales reports timely, even if you are not able to pay on time. And submit requests to waive penalties by email at the following addresses:

  • Spirits: spiritfees@lcb.wa.gov
  • Beer & Wine: beerwinetaxes@lcb.wa.gov
  • Marijuana: marijuanataxes@lcb.wa.gov

All spirit fee licensees, wineries and breweries can make payment by e-check through the LCB systems. Cannabis retailers can make e-check payments through their third party vendors. The LCB is also accepting checks and money orders by mail. Find more information here.


Updated March 25, 2020, at 5:00 p.m. ET.

Belgium

VAT filing and payment deadlines have been extended. Find more information here.

Additionally, businesses encountering financial difficulties can apply for a payment plan, exemption from default interest or remission of fines. Requests must be made by 30 June 2020. Find more information here.


Brazil

In Rio Grande do Sul and other states across Brazil, the technical updates of the MDF-e system have been postponed until July 6, 2020. Similar decisions have been taken regarding the rules of validation of the electronic tickets used for passengers or BP-e. Find more information here.


Colombia

The report and payment of VAT for taxpayers reporting on a tri-annual basis (January to April) or bi-montly basis (March and April) has been postponed until June 30, 2020 for air transportation, accommodation or entertainment businesses. Find more information here.

Decree 419/2020 establishes a system of compensation for the VAT paid by the population that is most vulnerable. The Decree establishes that the tax administration (DIAN) will issue a resolution regarding the details of the compensation. Find more information here.

24 products like hospital beds, oxygen equipment, surgery lamps, monitors among others, will be considered exempt from VAT when imported or sold locally. Invoices issued for the sale of those products should have a special legend indicating the reason of the exemption: “Bienes Exentos – Decreto 417 de 2020”. This exemption will only apply while the emergency period lasts. The seller of those temporarily exempt items will be required to submit an additional report to the tax administration, summarizing the invoice numbers, the price, the date and quantity of items sold. A similar report will be required regarding the items imported during the same period of exemption. Both reports are due by the 5th day of the next month on which the sale or the import were made. Finally, this decree also extends the deadline for updating the information due by taxpayers under the special tax regime (Regimen Tributario Especial).

Additionally, the tax administration has postponed the deadline for VAT payments corresponding to the first two months and the first quarter of this year 2020. Normally the VAT filing and payments corresponding to the first quarter and the first two months, is due between the 12 and 26 of May. But, but based on the provisions of this new regulation, VAT payments will be allowed by June 30, 2020. Find more information here.


Ecuador

The tax administration of Ecuador issued a Resolution SRI-SRI-2020-0002-R that postponed until several monthly tax reporting obligations until August 2020. This resolution applies to the filing of the Financial report (ROTEF), the tax on plastic bottles (IBP), Foreign currencies report (MID), Public notaries and other registrars report (APS) and the trusts and other investments reports (AFIC) that are due during the months of March and April. The resolution does not make any mention of postponement of the VAT payments and/or invoice reporting obligations. Find more information here.


Hungary

The Hungarian Tax Authority announced that the deadline to implement the mandatory real-time reporting version 2.0 xsd is postponed from April 1 2020 to July 1 2020. It is important to note that 2.0 xsd can already be used live in parallel with Version 1.1 xsd. Find more information here.


Peru

The Peruvian tax administration (SUNAT) postponed the deadline for filing and paying monthly tax obligations for February until the first week of April. The specific days will depend on the last digit of the taxpayer’s tax ID. The postponement only applies to taxpayers who had a gross income of no more than $9,660,000 Soles (Aprox. US$2,733,000) in 2019. Similar measures were taken in relation to the 2019 income tax return. Find more information here.


Poland

JPK VAT V7M and V7K introduction have been deferred to 1 July 2020 for all taxpayers. The VAT Matrix update is delayed until 1 July 2020.  And split payments to bank accounts not on the white list notification period were extended from 3 to 14 days. Find more information here.

Additionally, after the taxpayer submits an application, tax offices will consider deferred payment, payment in installments or cancellation of tax payment. Find more information here.


Portugal

Insurance premium tax

The Portuguese tax authorities have announced that the new Stamp Duty (STP) reporting system will be postponed to next year. For 2020, taxpayers will continue to file STP using the old system. This means that STP returns due for January, February and March 2020 will have to be declared by 20th April 2020. Then, we will go back to a normal monthly system until 20th January 2021 when we will file December 2020 STP returns. Find more information here.

VAT

Law 1-A/2020 extended statute of limitations and deadlines for procedural acts.

Additionally, the Portuguese tax administration issued the Despacho 104/2020 which provided an extension to the deadline for paying the income tax. But, in relation to the VAT, the government issued the Portaria n.º 71-A/2020 where it has allowed taxpayers to pay the obligations corresponding to the second quarter of the year in three monthly payments or in six monthly payments with only the last three payments subject to minimum interest. The same provisions apply for those required to file the VAT on a monthly basis. Find more information here.


The United Kingdom

VAT payments expected from March 20 through June 30 can be deferred until March 31 2021 without additional interest. No changes to filing deadlines. Find more information here.


United States

Federal

Tax information reporting

FATCA returns for Model 2 Jurisdictions from March 31 to July 15. Find more information here.

Tax day is now July 15. The U.S. Treasury and IRS extend the filing deadline and federal tax payments regardless of amount owed. Find more information here.

Additionally, emergency legislation has mandated paid family leave due to COVID-19. 


United States

Duluth, Minnesota

Sales tax

Duluth, Minnesota will postpone the bag fee that was scheduled to go into effect April 1, 2020 to January 1, 2021. Find more information here.


United States

Bexley, Ohio

Sale tax

Bexley’s single-use plastic ban is temporarily lifted along with the associated 10-cent bag fee on plastic and certain paper bags. Find more information here.


Uruguay

The tax administration (DGI) postponed the payment deadline for the minimum VAT. Taxpayers will be allowed to pay the VAT for February and March in six installments starting on May. All other tax obligations that were due between March 23 and March 26 are postponed until March 27. Tax obligations due by public entities are excluded from these measures. Find more information here.


Updated March 24, 2020, at 4:00 p.m. ET.

Romania

Romania renounced their decision to extend the filing deadline by one month. Tax returns will still be due on the 25th of March. Find more information here.


Canada

British Columbia

British Columbia has postponed its previously announced expanded registration requirements for Canadian sellers of goods, along with Canadian and foreign sellers of software and telecommunication services. These new registration requirements were intended to become effective on July 1, 2020, but have now been delayed until further notice. Find more information here.

Effective immediately, B.C. is extending filing and payment deadlines for the following taxes until September 30, 2020:

  • Employer health tax
  • Provincial sales tax (including municipal and regional district tax)
  • Carbon tax
  • Motor fuel tax
  • Tobacco tax

Find more information here.


Spain

Spain has temporarily extended the statute of limitation and expiration dates related to many tax obligations. Of particular importance, this extension applies to electronic certificates that accompany digital signatures under the SII requirement that would otherwise expire in the near term. For electronic certificates issued to individuals, validity is extended until March 13 2021. Decrees have also been issued that that allow taxpayers additional time to file appeals of sanctions and other adverse decisions of the Tax Administration. However, the Administration is clear that, at this time, there is no change to the standard deadlines for filing periodic tax returns and remitting tax payments.


Latvia

VAT reimbursements will be fast tracked and provided within 30 days of filing a VAT return. Find more information here.


Italy

The Law Decree n. 18/2020 extended the tax authority’s statute of limitation by two years.

Additionally, for entities that have fiscal domicile, legal or operative address in Italy, VAT filings are due June 30, 2020. And there will be no fines. Find more information here.


Greece

There are new go-live dates for the myDATA mandate starting June 1 2020 with a phased roll-out. Due to COVID-19, it is expected the go-live date will be postponed even further. Find more information here.


Chile

The Chilean tax administration issued a resolution 32/2020 on March 23, postponing the deadline for several filing obligations related to income tax, property tax and other similar tax related requirements. However, no postponement has been issued in regard to VAT, or electronic invoicing. Find more information here.


Argentina

The Argentinean tax administration (AFIP) suspended deadlines for remittances. The suspension will apply from March 18 to 31, 2020. This suspension does not apply to the deadlines for filing and paying taxes. Once the period of the suspension concludes, the counting of the deadlines will continue as normal. Find more information here.


Published March 18, 2020, at 9:00 a.m. ET.

United States

Alabama

Sales tax

Effectively immediately, the Alabama Department of Revenue is extending relief to small retail businesses that are unable to timely pay their February, March, and April 2020 state sales tax liabilities. Small businesses whose monthly retail sales during the previous calendar year averaged $62,500 or less may file their monthly sales tax returns for the February, March, and April 2020 reporting periods without paying the state sales tax reported as due. Late payment penalties will be waived for these taxpayers through June 1, 2020.

After the expiration of this temporary waiver, the Department will work with taxpayers electing to utilize the waiver program to develop workable payment plans that will allow taxpayers to pay outstanding liabilities for February, March, and April 2020.

This relief is automatic for small retailers filing their February, March, and April 2020 state sales tax returns. Similar sales tax relief may be available on a case-by-case basis to other businesses significantly impacted by the coronavirus (COVID-19) and the preventative measures being taken to limit its spread in Alabama. These taxpayers may contact the Department’s Sales and Use Division at 334-242-1490 to request relief.

Additionally, the Alabama Department of Revenue is waiving late payment penalties for businesses who are unable to timely pay their February, March, and April 2020 state sales tax liabilities and who are currently registered with the Department as engaging in NAICS Sector 72 business activities. Businesses in NAICS Sector 72 include those preparing meals, snacks and beverages for immediate consumption. Late payment penalties for state sales tax liabilities for these taxpayers will be waived through June 1, 2020. Find more information here.


California

Sales tax

The California Department of Tax and Fee Administration (CDTFA) is granting extensions for:

  • Filing returns
  • Making payments
  • Filing a claim for refund

This extension can be for a 60-day period and it will be not be granted automatically. It must be requested on each account individually. CDTFA are also offering relief from interest and penalties. Find more information here


Illinois

Sales tax

The Illinois Department of Revenue (IDOR) is waiving any penalty and interest that would have been imposed on late sales tax payments from qualified taxpayers. Taxpayers who are eligible for relief from penalties and interest on late sales tax payments are those operating eating and drinking establishments that incurred a total Sales tax liability of less than $75,000 in calendar year 2019. Qualified taxpayers will not be charged penalties or interest on late payments for sales tax liabilities reported on Form ST-1, Sales and Use Tax and E911 Surcharge Return, that are due for the February, March, and April 2020 reporting periods. For most qualified taxpayers, IDOR will automatically waive penalties and interest. If a taxpayer receives a notice from IDOR that imposes penalties and interest that the taxpayer believes should have qualified for a waiver, the taxpayer can respond to the notice to indicate that they believe they should have qualified for relief. IDOR will review the response and grant relief, if appropriate. Qualified taxpayers are required to file Form ST-1 for each reporting period by their original due dates, even if they are unable to make a payment. Find more information here.


Iowa

Semi-monthly deposits are due April 10 (previously March 25). Applies to semi-monthly payers who are Iowa residents or do business in Iowa. Find more information here.


Kansas

Shipping compliance

Pending final regulation: Kansas Alcoholic Beverage Controls has communicated to businesses that:

  • It is closing from March 23 to April 6
  • All monthly reports due in this period will be granted a 30 day extension
  • All active licenses that would expire between March 19 and April 30 will receive an automatic 30-day extension.

However, this change has not been reflected on the state website.


Louisiana

Sales tax

The state of Louisiana has announced an automatic extension for the February 2020 sales tax returns due on March 20. The filing and payment deadline have been extended to May 20, 2020; it is not necessary to submit an extension request. The Department will waive delinquency penalties and compromise interest associated with delinquent sales tax remittances provided payment is received by May 20, 2020.
To take advantage of this extension, sales tax returns and payments must be submitted through Louisiana Taxpayer Access Point (LaTAP) or by paper filing. All electronic filing and payment mandates in Title 61 of the Louisiana Administrative Code related to sales tax are temporarily suspended. There will be no penalties for taxpayers who do not file electronically or remit sales tax by electronic funds transfer. Find more information here.

The filing deadline for East Baton Rouge local sales tax returns has been extended by 30 days. The returns for February and March 2020 are extended, and will be considered timely if billed on or before April 20, 2020 and May 20, 2020 respectively. The order covers all business that collect sales tax on behalf of the City-Parish. Find more information here.

Shipping compliance

The state of Louisiana has announced an automatic extension for the February 2020 excise tax returns and payments for (1) Wine Shipped Direct to Consumers and (2) Louisiana State and Parish and Municipal Beer Tax due on March 20. The filing and payment deadline have been extended to May 20, 2020. It is not necessary to submit an extension request. The Department will waive delinquency penalties and compromise interest associated with delinquent sales tax remittances provided payment is received by May 20, 2020. Find more information here.


Maryland

Sales tax

Maryland Comptroller Peter Franchot announced the state will extend business-related tax filing deadlines. The June 1st extension applies to certain business returns with due dates during the months of March, April and May 2020 for businesses filing sales and use tax, withholding tax, and admissions & amusement tax, as well as alcohol, tobacco and motor fuel excise taxes, tire recycling fee and bay restoration fee returns.

Business taxpayers who file and pay by the extended due date will receive a waiver of interest and penalties.

If the IRS extends its April 15th filing deadline for corporate and individual income tax returns, Maryland will conform to the decision of the IRS. 


Massachusetts

Sales tax

The Department of Revenue will waive any late-file or late-pay penalties imposed under G.L. c. 62C, § 33 for returns and payments due during the period March 20, 2020 through May 31, 2020, for the following taxpayers:

  • Vendors with meals tax return and payment obligations pursuant to G.L. c. 62C, § 16 that do not otherwise qualify for relief announced in Emergency Regulation 830 CMR 62C.16.2(7)1 promulgated by the Department on March 19, 2020; and
  • Operators and intermediaries with room occupancy excise return and payment obligations pursuant to G.L. c. 62C, § 16 that do not otherwise qualify for relief announced in Emergency Regulation 830 CMR 64G.1.1(11)2 promulgated by the Department on March 19, 2020.

This is a waiver of penalties only; statutory interest will continue to accrue. Find more information here.


Michigan

Sales tax

The Michigan Department of Treasury is waiving penalties and interest for the late payment of tax or the late filing of the sales, use and withholding tax returns due March 20, 2020. The waiver will be effective for 30 days and any return or payment due on March 20 may be submitted without penalty or interest through April 20, 2020. Find more information here.


Minnesota

Sales tax

The Minnesota Department of Revenue is granting a 30-day sales and use tax grace period for businesses identified in Executive Order 20-04. During this time the department will not assess penalties or interest.

Identified businesses with a monthly sales and use tax payment due March 20, 2020, will have until April 20 to make that payment. These customers should still file their return by March 20. At this time, this grace period for penalty and interest is only for monthly filers and only for the March 20 payment. Identified businesses can request additional relief from penalty and interest for reasonable cause after April 20. If you have questions or wish to request additional time, please contact the Minnesota Department of Revenue. Find more information here


New Jersey

Tax information reporting

New Jersey extended the due date for Affordable Care Act (ACA) returns from March 31 to May 15. Find more information here.


New York

Sales tax

New Yorks’s Governor granted the Tax Commissioner with additional authority to abate late filing and payment penalties, as well as interest on quarterly sales tax filings which were due on March 20th. Taxpayers who were unable to file and pay taxes on time due to the COVID-19 outbreak may apply for an abatement of penalties and interest, including those whose tax preparers were unable to meet deadlines due to the outbreak). For details on who can qualify for penalty relief please see Notice N-20-1. Relief is not available for monthly filers.


North Carolina

Sales tax

The North Carolina Department of Revenue has waived penalties for failing to obtain a license, to file a return or to pay taxes. The waiver applies to the failure to timely obtain a license, file a return, or pay a tax that is due between March 15, 2020, and March 31, 2020, if the license is obtained, the return or extension application is filed, or the tax is paid by April 15, 2020. Find more information here.


North Dakota

Sales tax

North Dakota taxpayers can request additional time to file a return or pay tax by contacting the Office of State Tax Commissioner. Find more information here.


Oregon

Sales tax

Initial quarterly payments for the new Corporate Activity Tax (CAT) are due April 30, 2020. The department understands that the pandemic may impact commercial activity, up or down, to an extent that makes it difficult for businesses to estimate their first payment. The department will not assess underpayment penalties to taxpayers making a good faith effort to estimate their first quarter payments. Find more information here.


Pennsylvania

Sales tax

The Pennsylvania Department of Revenue is waiving penalties for businesses that are required to make Accelerated Sales Tax (AST) prepayments by the deadline of Friday, March 20.

Additionally, for April sales tax payments, the department is waiving the AST prepayment requirement and asking businesses to simply remit the sales tax that they have collected in March.

Visit the Department of Revenue’s page on Accelerated Sales Tax Prepayments for more information on how to calculate your prepayments.

All businesses are encouraged to remit online using e-TIDES, the department’s online tax system for businesses. Find the REV-819 on the department’s website for a schedule of return and prepayment due dates. You can also visit the department’s Online Customer Service Center to find answers to common tax questions or submit a question to the department. Find more information here.

Tax information reporting

Tax payments due on April 15 may be postponed to July 15, individuals and businesses are limited in the payments they can defer. Find more information here.


South Carolina

Sales tax

The South Carolina Department of Revenue is offering more time to file returns and pay taxes to assist taxpayers during the Coronavirus (COVID-19) outbreak. Tax returns and payments that were previously due April 1 to June 1 are now due June 1, 2020. This includes individual income tax returns.


Vermont

Sales tax

The governor of Vermont is extending the deadline to file any future sales and use tax returns as well as meals tax returns until further notice. This is not applicable to returns corresponding to previous months.


Virginia

Sales tax

The state of Virginia is accepting petitions from sales tax dealers for a filing time extension. If the petition is approved the sales tax dealer will have 30 extra days (April 20) to file and pay the February returns due March 20. However, interest will accrue even if an extension is granted. Find more information here.


Washington

Sales tax

The Washington Department of Revenue (DOR) will work with businesses that cannot file or pay their taxes on time due to the Coronavirus (COVID-19) outbreak.

Governor Inslee declared a state of emergency in response to new cases of COVID-19 on February 29, 2020, which allows the agency more flexibility in working with impacted businesses. Affected businesses that owe Washington taxes may qualify for:

  • Filing extension for excise tax returns
  • Late payment penalty waiver request

Businesses can request an extension or penalty waiver by sending a secure email in their My DOR account or by calling the Washington DOR’s customer service staff at 360-705-6705, Monday through Friday 8 a.m. to 5 p.m.

Businesses can also request:

  • To reschedule a planned audit (contact the auditor).
  • More time to file a business license or registration renewal (call Business Licensing Service at 360-705-6741 or email BLS@dor.wa.gov).
  • An extension of its expiring resellers permit (call 360-705-6705 or email Reseller@dor.wa.gov)

Washington D.C.

Sales tax

On March 17, 2020, the Council of the District of Columbia expanded the authority of the Office of Tax and Revenue (OTR) to abate interest and waive penalties for failure to timely pay sales and use tax due for periods ending on February 29, 2020 and March 31, 2020, provided certain conditions are met.

All vendors who are required to file sales and use tax returns on either a monthly or a quarterly basis are eligible for this relief, except for hotels and motels permitted to defer real property taxes under D.C. Code § 47-811(b). For more information regarding the real property tax deferral, see OTR Notice 2020-01, Extended Real Property Tax Due Date for Hotels and Motels Relating to the First Half of Tax Year 2020 Installment. Any hotel or motel vendor registered with OTR with the NAICS code 72111, 721110, 72112 or 721120 is ineligible for this relief.

Accordingly, OTR will automatically waive interest and penalties that would ordinarily be assessed for failure to timely pay sales and use tax due for periods ending on February 29, 2020 and March 31, 2020 as follows:

  • Monthly Filers: Eligible vendors who are required to file sales tax returns on a monthly basis must file an FR-800M as usual through MyTax.DC.gov on or before March 20, 2020 for the period ending February 29, 2020 and on or before April 20, 2020 for the period ending March 31, 2020.
  • Quarterly Filers: Eligible vendors who are required to file sales tax returns on a quarterly basis must file an FR-800Q as usual through MyTax.DC.gov on or before April 20, 2020 for the period ending March 31, 2020.

All eligible vendors must pay in full all sales and use taxes due for periods ending on February 29, 2020 and March 31, 2020 on or before July 20, 2020. Failure to pay in full by July 20, 2020 will result in interest and penalties accruing from your original payment due dates. Find more information here.


Austria

Taxpayer can seek elimination of default interest and penalties for late submissions – but the tax office must be convinced that the reasons are due to COVID-19. Find more information here.


Canada

Saskatchewan

Businesses directly impacted by Coronavirus (COVID-19) that are unable to file their provincial tax return(s) by the due date may submit a request for relief from penalty and interest charges on the return(s) affected. Penalty and interest waiver requests can be submitted electronically through the Saskatchewan eTax Service (SETS) located at sets.saskatchewan.ca, by email (sasktaxinfo@gov.sk.ca) or in writing to the Ministry of Finance. Find more information here.


Costa Rica

Pending final regulation: Costa Rica is currently examining a law that would postpone the payment of the VAT. Find more information here.


Cyprus

Cyprus is reducing the standard VAT from 19% to 17% from April 1, 2020 to May 31, 2020 and the reduced VAT rate from 9% to 7% from April 1, 2020 to July 15, 2020.


Czech Republic

Penalties for late VAT returns will be waived if it is established that the reason for the failure was related to COVID-19. There will be no fine for late a submission of a Control Statement. There will be no fine for failure to submit a Control Statement as long as it is established that the reason for the failure was related to COVID-19. There will be no flat CZK 400 fee for filing an application for deferral, until 31 July 2020.


Denmark

The payment deadline for VAT for monthly settlement companies is to be postponed by 30 days for March, April, and May 2020. The VAT period for the first and second quarters (Q1 and Q2) of 2020 must be stated by 1 September 2020. However, if VAT liability for Q1 2020 is negative, it is still possible to report VAT for Q1 by 1 June 2020 so that the negative response can be refunded. The VAT for the whole of 2020 must be stated by 1 March 2021. If the VAT liability for the first half of 2020 is negative, it is still possible to report the VAT for the first half by 1 September 2020 so that the negative response can be refunded. Find more information here.


Germany

There are possibilities for deferral of tax payments, reduction of advance payments and relief from penalties. To find out, taxpayers must contact their tax office on a case-by-case basis. Find more information here.


Luxembourg

There will be no penalties for exceeding a deadline for filing a VAT return. This tolerance will continue to apply until indicated otherwise by the tax authority. Find more information here.


Netherlands

Taxpayers can ask the tax authority for a special deferral of payment. You must send a letter to the tax authority indicating that you have had payment problems due to the corona outbreak. Recovery measures will then be stopped and taxpayers will receive a 3 month extension of payment. Find more information here.


Sweden

Businesses can apply for deferral of tax payments. This can include VAT if the business can show they had to use the VAT collected “to pay for something it could not have anticipated to mitigate the consequences of the Coronavirus”. The tax authority will normally fix the delay to 2 months, but up to 4 months is possible. Find more information here.


Puerto Rico

Sales tax

Puerto Rico issued an emergency sales tax holiday in response to Coronavirus (COVID-19) on items of “First Necessity” effective March 23- April 30. This includes hand sanitizers, personal disinfection items, tissues, masks, isopropyl alcohol, disinfectants and antiseptics, household cleaning supplies, vinyl gloves, pain relievers and medications with acetaminophen and ibuprofen, and anti-catarrhal medications. Find more information here.

Sales and use tax returns due between March 15 and March 31 (corresponding to the February period) will have an extension period of one month. The new due date for filing and paying the February returns will be April 20. Penalties for not submitting the bi-weekly payment corresponding to this period return will be waived. Find more information here.

Tax information reporting

The due date for 2019 informative filings has been extended to April 15. Find more information here.

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Author

Sovos

Sovos is a leading global provider of software that safeguards businesses from the burden and risk of modern transactional taxes. As VAT and sales and use tax go digital, businesses face increased risks, costs and complexity. The Sovos Intelligent Compliance Cloud is the first complete solution for modern tax, giving businesses a global solution for tax determination, e-invoicing compliance and tax reporting. Sovos supports more than 7,000 customers, including half of the Fortune 500, and integrates with a wide variety of business applications. The company has offices throughout North America, Latin America and Europe. Sovos is owned by London-based Hg. For more information visit www.sovos.com and follow us on LinkedIn and Twitter.
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