EU VAT Measures in Response to Coronavirus

Denise Hatem
March 23, 2020

Countries worldwide are introducing indirect tax measures intended to mitigate the economic consequences of the coronavirus pandemic. Prospective measures by EU Member States include:  

Austria

Austria has announced that taxpayers can seek elimination of default interest and penalties for late submissions resulting from coronavirus. 

Belgium

Belgium has announced that businesses encountering financial difficulties can apply for a payment plan, exemption from default interest, or remission of fines. Requests must be submitted by 30 June 2020.

Czech Republic

The Czech government has approved a tax package containing various VAT measures. Late filing of control statements is to be handled as follows: a CZK 1,000 fine (triggered when the report is submitted late but before a notice is issued) is automatically waived, provided the fine was incurred between 1 March 2020 and 31 July 2020. Other penalties will be waived at the taxpayer’s request if reasons are coronavirus related. The fee for filing an application for VAT deferral is waived until 31 July 2020.

Cyprus

As part of its Coronavirus Impact Support Program, Cyprus is reducing its standard VAT rate from 19% to 17% between 1 Apri1 2020 and 31 May 2020, and the reduced VAT rate from 9% to 7% between 1 April 2020 and 15 July 2020. VAT filing and payment obligations for businesses with turnover under EUR 1 million are also suspended until the end of April 2020.

Denmark

The Danish parliament passed a bill to extend VAT payment deadlines. For companies paying VAT monthly, the deadline is extended by 30 days for March, April and May 2020. For companies paying VAT quarterly, the first two quarters are combined, to be filed by 1 September. For companies paying VAT half-yearly, the first and second half of the year are combined, to be filed by 1 March 2021. 

Germany

Germany has announced that it will implement tax policy measures facilitating payment deferral and relaxing collections and late payment penalties.

Greece

Greece issued a decree extending the deadline for VAT payment and suspending collection of VAT debts for affected businesses.

Italy

An Italian decree provides that VAT filings are not due until 30 June 2020, with no fines, for entities that have a fiscal domicile or legal or operative address in Italy. Taxpayers in certain industry sectors will also have their March 2020 VAT payments suspended by two months.

Netherlands

Netherlands has announced VAT payment deferral by written request to the tax authority explaining how coronavirus contributed. Following receipt, recovery measures will cease and fines for failure to timely file are waived.  

Poland

Poland has announced a “shield package” to include deferral of the new JPK_V7M (monthly) and JPK_V7K (quarterly) for large businesses from 1 April to 1 July 2020. Tax offices will also consider granting relief to include deferred payment and payment by instalments.     

Portugal

Portugal has published regulations allowing second calendar quarter payments to be made in either three or six-monthly instalments.

Slovak Republic

The Slovak Republic has proposed extending its deadline for VAT payment.

Romania

Romania has announced a new VAT refund mechanism from 1 April 2020 and a filing extension from 25 March 2020 to 25 April 2020.

Spain

Spain has announced it will issue a regulation extending filing deadlines.

Sweden

Sweden has announced possible deferral of VAT payment where the taxpayer shows “it has been forced to use the money to pay for something it could not have anticipated to mitigate the consequences of coronavirus.”  

Sovos Global VAT Solutions

Sovos continues to closely monitor all global VAT developments, including those introduced in response to coronavirus.

You can follow our live feed here. 

 

 

 

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

Author

Denise Hatem

Denise Hatem is a Regulatory Counsel at Sovos specializing in international taxation, with a focus on value added tax systems in the European Union. Denise received her B.A. from the University of Connecticut and her J.D. from Notre Dame Law School. She is a member of the Massachusetts Bar.
Share This Post

LATAM VAT & Fiscal Reporting
May 20, 2020
Sovos Acquires Taxweb, Extends Tax Determination Capabilities in World’s Most Challenging Compliance Landscape

Earlier this month Sovos announced its second acquisition of 2020, completing our solution for Brazil with an unparalleled offering that solves tax compliance in the place where it is most challenging to do so.  Too many companies doing business in Brazil have been burdened by managing multiple point solutions for continuous transaction controls (CTCs), tax […]

EMEA VAT & Fiscal Reporting
October 29, 2020
“OSS” Explained – Explanatory Notes for July 2021 VAT E-Commerce Rules

On 30 September 2020, the European Commission published its “Explanatory Notes on VAT E-Commerce Rules,” to provide practical and informal guidance on the upcoming July 2021 e-commerce regulations. This “EU VAT e-commerce package” was initially adopted (under Directive 2017/2455 and Directive 2019/1995) and set to be implemented on 1 January 2021 but has since been […]

ShipCompliant
October 28, 2020
How to Get a Handle on State Reporting

Expanding into new states can be great for your business’ growth, but it comes with added intricacy. Because each state has the authority to regulate the production, sale, and distribution of alcohol within its borders, state reporting can get complicated for alcohol producers and retailers.  Just how complicated can it get? When states determine what […]

EMEA IPT
October 28, 2020
Brexit: Implications for Insurers as Year End Approaches

As 2020 draws to a close, Brexit is firmly back on the radar as a concern for businesses across Europe, and the insurance industry is no exception. With the end of the transition period rapidly approaching, the UK is on course to become a third country after 31 December 2020. The UK is currently seeking […]

E-Invoicing Compliance EMEA India
October 28, 2020
India: E-Invoicing Platform to Replace E-Waybill System

Even though India’s continuous transaction controls (CTC) reform went live less than a month ago, the surrounding legal and technical framework for the e-invoicing platform still has many moving pieces. However, little by little, these puzzle pieces have started to come together. Earlier this year, the Indian authorities announced their intention to facilitate the e-invoicing […]

Tax Information Reporting United States
October 27, 2020
Sovos Regulatory Course Spotlight and Meet Our Educators

Course Offering Spotlight In this week’s course offering spotlight, we are highlighting another one of Sovos’ regularly offered courses, Schedule P Preparation. This course teaches you how to complete schedule P of the annual statement and understand its analytic value. In our upcoming Sovos Insurance Regulatory Summit 2020, we will be offering a session on […]