Further EU VAT Measures in Response to Coronavirus

Kelsey O'Gorman
April 16, 2020

Sovos recently published a blog regarding prospective measures EU member states are taking in response to the Covid-19 pandemic.  Included below are additional actions introduced from countries across the EU:

European Union

The European Commission has approved requests from all EU Member States to temporarily suspend VAT and customs duties on imported medical equipment.  This move is intended to ease the financial burden on the healthcare industry and applies retroactively from 30 January 2020 until 31 July 2021.  The European Commission noted that this measure may be extended if necessary after consultation with Member States.

Belgium

Certain periodic VAT return deadlines have been extended.  February 2020 returns are normally due on 20 March 2020; the deadline has been extended until 6 April 2020.  March 2020 returns are normally due on 20 March 2020; the deadline has been extended until 7 May 2020. 

Cyprus

Cyprus had previously announced that a temporary reduction of the VAT rates by which the standard VAT rate decreased from 19% to 17% for a period of 2 months and the reduced VAT rate decreased from 9% to 7% for a period of 3.5 months would take effect to provide relief for taxpayers.  This measure has since been withdrawn.

Greece

Payment of VAT due between 11-30 March 2020 has been suspended until 31 August 2020 for certain affected businesses.  Further, the following products are taxable at a 6% VAT rate (as opposed to 24%) until 31 December 2020: protective masks and gloves, antiseptic products, soap, and ethyl alcohol.  New go-live dates for the myDATA mandate have been published, starting from 1 June 2020 with a phased roll out.  Greece is expected to postpone the go-live date even further due to the ongoing pandemic crisis.

Hungary

The Hungarian Tax Authority announced that the deadline to implement mandatory real-time reporting version 2.0 XSD is postponed from 1 April 2020 to 1 July 2020.

Latvia

The State Revenue Service has announced that the reimbursement of overpaid VAT amounts will be issued within 30 days, a shorter period than the existing VAT law provides.

Luxembourg

The tax administration released guidance stating that a failure to file VAT returns within the deadlines will not result in any fines.  Additionally, VAT credit balances below €10,000 will be reimbursed.

Malta

The VAT payments for March and April 2020 may be postponed by taxpayers who have suffered a significant downturn in business without penalties or interest.

Netherlands

Tax authorities will automatically grant an extension of payment of 3 months once the taxpayer requests an extension.  Penalties are waived for late or non-payments once the above extension is requested.

Poland

Poland has deferred JPK_VAT V7M and V7K to 1 July 2020 for all taxpayers.

United Kingdom

VAT payments due from 20 March 2020 through to 30 June 2020 will be deferred.  This applies to all businesses, including non-established taxpayers.  Additionally, the HMRC has stated that the soft landing period for MTD digital links has been extended to 1 April 2021 for all taxpayers.

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

Kelsey O'Gorman

Kelsey O’Gorman is a Junior Regulatory Counsel at Sovos. Within Sovos’ Regulatory Analysis function, Kelsey focuses on global sales tax and VAT issues, supporting both the tax determination and reporting engines. Kelsey received her B.A. in Psychology from University at Buffalo and her J.D. from Roger Williams University School of Law. 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 […]

Tax Compliance Tax Information Reporting United States
June 1, 2020
The Advantage of a Cloud-First Company

With the acquisition of Eagle Technology Management (ETM) and Booke Seminars, Sovos has united the very best in statutory reporting solutions, technology and expertise. Below is an overview of our strategy following these acquisitions: Sovos’s SaaS and Security Strategy  Sovos at its core is a Software as a Service (SaaS) and cloud-first company. This means […]

ShipCompliant United States
May 28, 2020
Ask Alex: Your Bev Alc Compliance Questions Answered (May 2020)

Do you have questions about the rules, regulations, and compliance requirements of the beverage alcohol industry? This series, Ask Alex, is a perfect opportunity to get those pressing questions answered straight from one of the industry’s regulation and market experts, Alex Koral, Senior Regulation Counsel, Sovos ShipCompliant.  To take advantage of this opportunity and get […]

E-Invoicing Compliance EMEA
May 28, 2020
Turkey’s Transition Conditions for E-ledger

On October 19, 2019, the Turkish Revenue Administration (TRA) published a communique making the e-ledger application mandatory for e-invoice users, companies subject to an independent audit, and companies identified by the Presidency to have poor tax compliance.  The e-ledger application enables businesses to create the legally mandated general journals and ledgers and submit e-ledger summary […]

ShipCompliant United States
May 27, 2020
How Technology Partnerships Improve DtC Compliance

To be an expert, one has a specialty. Ours is beverage alcohol compliance. Since compliance sits at the heart of operations, being connected at every step helps our customers focus on their business instead spending countless hours on manual processes. Compliance is challenging, but we make it easier with a large and robust network of […]

EMEA IPT Tax Compliance
May 26, 2020
Why IPT Reporting is so Complex for Insurers

Accurately calculating insurance premium tax (IPT) for reporting can be complex.  And the ramifications of getting it wrong can be far reaching from impacting profit margins to unwelcome audits, fines and damage to your company’s reputation in the market and with customers. Calculation methods When I speak to customers about how they calculate insurance premium […]