Austria (Last updated: 23/03/2020)
COVID-19 also has consequences for foreign trade.
This entry was updated on 23 March 2020 and reflects the information currently available to us. https://www.pwc.at/de/newsletter/austrian-tax-news/2020/atn-special-issue-covid-2.html#artikel-3
For more information please contact christine.weinzierl@pwc.com
Croatia (Last updated: 17/04/2020)
- VAT exemption is prescribed for the supply of goods and services without consideration (donations) for the purpose of combat against the effects of the COVID 19 pandemic, until the expiration of three-month period, starting 20 March 2020. The exemption is applicable starting with VAT liability that is due after 20 March 2020. Currently not further details are available.
- Exemption from VAT and customs is prescribed on the final import of certain goods for the combat against the effects of the COVID 19 pandemic. The list of goods, deadlines and the conditions are prescribed within the “COMMISSION DECISION (EU) 2020/491 of 3 April 2020 on relief from import duties and VAT exemption on importation granted for goods needed to combat the effects of the COVID-19 outbreak during 2020.”
- In general, the importers are obliged to pay VAT on import regardless if they have right to deduct this VAT or not. As a new measure the importers, taxable persons registered for VAT do not have to pay VAT on imported goods. Instead the VAT is declared in the VAT return. As a result, there is not actual payment (cash flow), since at the same time in the VAT return the input VAT is declared if taxpayer is entitled to VAT deduction. This measure also applies until the expiration of the three-month period from 20 March 2020.
- Taxpayers affected by COVID-19 pandemic (i.e. taxpayers fulfilling certain criteria as for example drop in revenue for more than 20% comparing to the same month in the previous year) who declare and pay VAT on the accrual basis are entitled to pay VAT as if they were using cash accounting scheme. This measure allows taxpayers that are declaring and paying VAT on the accrual basis to postpone payment of VAT until they collect declared VAT from their buyers. In other words, VAT liability which payment may be postponed, must arise from issued invoices that are not paid by buyers taking into consideration unpaid bills from vendors.
https://globalvatonline.pwc.com/news/croatia-covid-19-emergency-tax-measures
For more information please contact marko.marusic@pwc.com
Czech Republic (Last updated: 16/04/2020)
Update 16/04/2020
The Ministry of Finance has not extended the deadline for the submission of VAT reports or payment of VAT liability as such. In terms of VAT, the following measures apply:
A general waiver of the CZK 1,000 penalty for failure to submit a control statement, only if the liability to settle such a penalty arises in the period from 1 March 2020 to 31 July 2020.
If the VAT payer is able to prove the failure is in any way related to the COVID-19 outbreak (typically an illness or quarantine of accountants or other key employees whose absence made it impossible to fulfil VAT obligations; a substantial drop in revenues due to the outbreak), the following measures apply:
- A waiver of the late payment interest.
- A waiver of the interest connected to the deferral of VAT payment or VAT payment instalment schedule.
- An automatic waiver of the sanction for the late submission of the VAT return if the tax office grants one of the two above waivers as well.
- A waiver of other sanctions for the late submission of the control statement (all sanctions from CZK 10,000 to CZK 50,000). This applies to cases when the appeal is issued within the period of 1 March 2020 to 31 July 2020.
- A general waiver of administrative fees for the filing of the respective requests.
All sanctions can be waived only after the related VAT liability is paid and the respective control statement(s) are submitted.
On 3 April 2020, the European Commission issued a decision allowing Member States to exempt medical supplies and equipment related to COVID-19 from import duties and VAT.
In this context, the customs authorities have published the conditions under which the exemption will be recognized.
In order to be exempt from customs duties, medical supplies must be imported by a government or other charitable or philanthropic organization with the purpose of distributing them free of charge to persons in need. Furthermore, the acquisition of goods free of charge from a third-party country is also subject to a VAT exemption. Should the goods be paid for, however, the import VAT exemption cannot be granted, irrespective of the status of the importing entity.
Please see further information here: https://www.pwc.com/cz/en/temata/covid-19-pravni-a-danovy-servis.html#VAT
For further information please contact tomas.vlk@pwc.com
Estonia (Last updated: 20/03/2020)
Update 09/04/2020
The Estonian Tax and Customs Board (ETCB) has launched a website for frequently asked questions (FAQ). https://www.emta.ee/eng/etcbs-information-emergency-situation
Furthermore, on 7 April Estonian tax authorities have announced that customs duties and VAT are temporarily waived on the import of certain medical equipment from non-EU countries in accordance with the recent decision adopted by the European Commission (. Please note that the tax exemption does not apply to medical equipment, which is imported by private businesses (or individuals) for the purpose of private use or re-selling.
For further information, please contact tanja.kriisa@pwc.com
Germany (Last updated: 23/04/2020)
Announcements of the General Customs Directorate
The Federal Ministry of Finance has instructed the main customs offices to provide appropriate assistance to taxpayers where the relevant duties are regulated under federal law and administered by the customs administration (e.g. energy tax and air traffic tax). The intention is to prevent the taxpayer suffering undue hardship. In accordance with the Ministry circular of 19 March 2020, measures are to include in particular deferral options, the postponement of enforcement and the reduction of advance payments.
Further information is available here: https://blogs.pwc.de/german-tax-and-legal-
For further information please contact frank.gehring@pwc.com
Ireland (Last updated: 20/05/2020)
Update 20/05/2020
Update from the local tax authority can be found here
Update 09/04/2020
Today (8 April 2020), Revenue confirmed that it has implemented an EU Commission decision that allows goods to combat COVID-19 to be imported, from outside the EU, free of import duties and VAT. https://www.revenue.ie/en/corporate/press-office/press-releases/2020/pr-080420-relief-from-payment-of-import-duties-VAT-for-goods-imported-to-combat-COVID-19.aspx
For further information, please contact sean.brodie@pwc.com
Italy (Last updated: 26/05/2020)
Update 26/05/2020
"Decreto Rilancio" (n. 34/2020) .
Article 123 - Cancellation of the safeguard clauses regarding VAT and excise duties
Via the legislative provisions at issue, the safeguard clauses which should have introduced a number of automatic increases in (i) the VAT rates and (ii) excise duty rates on certain fuel products starting from 1 January 2021, have been definitively cancelled.
Therefore, standard VAT rate (22%) and reduced VAT rate (10%) will not change.
Article 129 - Electricity and gas excise duty advance payments
The advance payment of excise duties on electricity and gas is due in 1/12 of the excise duty invoiced in the previous FY. The advance payment for May to September 2020 will be due only for 90% of the above amount. The excise duty due for FY20, to be paid in March 2021, can be paid by 10 installments, from March to December, without interest. The deadline for the payment of the excise duty due on electricity for May 2020 is postponed to May 20, 2020.
Article 130 - Postponement of excise duty accomplishment
Some excise duty accomplishments were postponed.
In particular:
(a) the mandatory excise duty authorization for warehouse of excise duty paid energy products having capacity between 10 and 25 mc and from 5 to 10 mc equipped with dispenser is postponed to 1 January 2021;
(b) postponement to 1 October 2020 of the introduction of specific reference for EU supply of lubricant oil;
(c) postponement to 31 December 2020 of IT system for transport and detention of fuel and diesel fuel for warehouse having a capacity higher than 3.000 mc;
(d) postponement to 31 December 2020 of the electronic transport document for fuel and diesel fuel for which excise duty was already paid;
(e) postponement to 30 September 2020 of the implementing Decree in relation to submission of data concerning electricity and gas transported and invoiced to final customers.
Article 131 - Postponement of excise duty payments
The payment of the excise duty for the energetic products released for consumption during March 2020 can be done by May 2020, 25 without penalties or interests.
Article 132 - Energetic products excise duty payments
The payment of the excise duty for the energetic products released for consumption during April-August 2020 can be done for the 80% of the amount due as advance payment while the remaining amount will be due by 16 November 2020 without interests.
The advance payment is due according to the following deadline:
- by May 25 for the products realised for consumption in April;
- according to the ordinary deadline for the products realised during May, June, July and August.
Article 161 - Postponement of customs duties and import VAT payments
This provision has the aim to postpone for 60 days the payment of import VAT and customs duties for which the deadline is between May 1 and July 31, 2020. No penalties nor interests will be applied.
Article 162 - Excise duty payment by installment
Payment by installment of the excise duty, in case of economic difficulties, for the warehouse keeper of energetic and alcoholic products is immediately applicable.
Article 163 - Postponement of tobacco payments for VAT and excise duty
The payment of the excise duty and VAT due on tobacco and related products for the months from April to May 2020 will be due on 31 October 2020.
Update 23/03/2020
On March 19, 2020, the Italian Customs Authorities provided operative instructions related to the following:
1) export of personal protective equipment;
2) import of goods to be used in order to face the COVID-19 emergency under relief from customs duties and VAT.
With reference to the first point, the Customs Authorities list the tariff codes (i.e. the Combined Nomenclature codes) for the personal protective equipment as, for example, visors, masks, gloves, etc. whose export is subject, from March 15, 2020, to a specific authorization, as provided by EU Reg. 2020/402. The above-mentioned authorization is released by the Office X of the DG for the international trade Policy. The Customs Authorities specify that, in the box 44 of the SAD, it should be reported the code CO86, related to the goods for which the EU Reg. 2020/402 should be applied.
As to the second point, the Customs Authorities clarified that, in the light of the art. 57 of the EU Reg. 1186/2009, instruments and apparatus intended for medical research, establishing medical diagnoses or carrying out medical treatments which are donated either by a charitable or philanthropic organization or by a private individual to health authorities, hospital departments or medical research institutions, approved by the competent authorities of the Member States are admitted free of import duties. This is applicable also in case the above-mentioned instruments and apparatus are purchased directly by health authorities, hospitals or medical research institutions entirely with funds donated by a charitable or philanthropic organization or with voluntary contributions, provided that: (a) the donation of the instruments or apparatus does not conceal any commercial intent from the donor; b) the donor is in no way connected with the manufacturer of the instruments or apparatus for which the relief is requested.
Moreover, the Customs Authorities clarify that, in this case, the VAT, normally due for the importations, could not be charged if the goods have been donated by public entities or recognized organization or foundations with the sole purposes of assistance, charitable, education, study and research activities or if the goods have been donated in favor of populations affected by natural disasters or catastrophes. All the other importations of goods, carried out by State entities or with charitable or philanthropic purposes, necessary to face the current emergency situation, could be performed under customs duties and VAT relief, provided these subjects are authorized by the Customs Authorities, as provided by the special customs and VAT regime for the imports of goods in favor of disaster’ victims.
In the same way, prior authorization of the Customs Authorities, also the importation of goods, carried out by authorities or entities, aimed to face the COVID19 emergency, are exempted from customs duties and VAT, if qualified as donations received in the context of international relations between public authorities or by entities that perform functions of public interest.
From a practical point of view, in the customs bills of import, in the box 37, after the code 40, indicating the definitive importation, the following codes will be reported: C17, C26 and C28, as provided by the EU Reg. 2016/341. Moreover, in order to speed up the customs clearance procedures, it will be possible to give evidence of the specific destination of the goods, reporting in the box 22 of the customs bills the additional code 17YY.
For more information please contact alessia.zanatto@pwc.com
Netherlands (Last updated: 03/06/2020)
Update 03/06/2020
Deferment of customs duties
In March 2020, as a response to the financial difficulties companies face due to the corona crisis, Dutch Customs announced that they can grant deferment of customs duties for importing companies upon request. The deferment would apply until the 15th day of the month following the month in which the installed measures to deal with the coronavirus are terminated. Not exactly clear was what these "installed measures" mean.
https://www.pwc.nl/en/insights-and-publications/tax-news/vat/practical-difficulties-when-requesting-deferment-customs-duties.html
Update 07/05/2020
Practical issues with REX statements including approach by Dutch Customs.
The Registered Exporter (REX) system was introduced by the EU in 2017 to prove the preferential origin of goods under the Generalized System of Preference (GSP), and replaced the 'Form A' certificates that were issued by the competent authorities in the exporting countries and introduced a system of self-certification.
Because of a rather strict approach by Dutch Customs towards the requirements surrounding the statements of origin under REX, we encourage companies to review the current statements they receive from their suppliers - especially in the situations described above. Please see below our latest news item for more information.
https://globalvatonline.pwc.com/news/practical-issues-with-rex-statements-including-approach-by-dutch-customs
Update 07/04/2020
The latest update on the Dutch customs measures can be found here
For more information please contact manon.ultee@pwc.com.
Update 03/04/2020
The Dutch government has just confirmed officially that the payment extension rules have been simplified further and the policy has now been extended to taxes falling due in the period until and including June 18, 2020. It now also applies to lottery tax, excise duties, soda tax (verbruiksbelasting), insurance premium tax, energy tax and other environmental taxes.
Update 27/03/2020
On 26 March 2020, the Dutch customs authorities have officially announced a package of measures to support companies which are facing challenges due to the coronavirus epidemic. Affected businesses can be granted more time to pay their duties, penalties are eased and tailormade solutions will be made available regarding legal terms and licenses.
Deferred payment
- The Dutch customs authorities will grant companies deferment of payment of import duties. A company needs to file a formal request if it wants to defer the payment. The deferment will ultimately apply until the 15th day of the month following the month in which the installed measures to deal with the Coronavirus are terminated.
- Payments of customs duties are generally made by your logistic service provider after which the duties are charged on to the company for whom the service is provided for. In order to be able to make use of the deferment, timely execution of precautions is advised. Reach out to your logistic service provider as soon as possible to discuss next steps and align on the best approach.
- Deferment of payment of excise duties and consumption tax can be requested after the (excise) tax assessment (‘naheffingsaanslag’) is issued.
Penalties and fines
- The Dutch customs authorities will take on a flexible approach in dealing with companies who are not able to comply with customs obligations in time if this is caused by the Corona crisis.
- If no violations or criminal acts and/or no intent or blame is in play, no penalties will be imposed.
Legal terms
- The Dutch customs authorities will provide tailored solutions for companies that cannot comply with strict legal deadlines (f.e. the submitting of the supplementary declaration).
- File applications for repayment or objections in a pro-forma manner (i.e. without detailed information on why the request is filed). In case of exceeding of the legal term the special circumstances will be taken into consideration and one will be allowed to further substantiate the request / appeal at a later stage.
- Non-compliance in legal terms in relation to transit procedures resulting from installed measures necessary to deal with the Corona virus will be regarded as acceptable failure to comply with the time limit.
Licenses
- The Dutch customs authorities will provide tailored solutions for companies that cannot comply with financial solvency requirements in relation to their AEO-status, the appointment of the customs representative or the reduction or exemption of the guarantee on the basis of the comprehensive guarantee authorization.
- The terms for pending license applications which cannot be completed in time as a result of the Coronavirus shall be suspended (in case of electronic filing one is asked to report the delay themselves).
Practical points of interest and next steps
At PwC we see opportunities for companies to cope with problems they are facing as a result of the Covid-19 crisis. This package of measures installed by the Dutch customs authorities endorse the willingness of the Dutch government to assist companies in these challenging times. On another note application of these measures in practice will prove to be a big challenge. Align with your business associates to make sure all necessary precautions are taken into consideration.
Update 23/03/2020
Dutch Customs has announced a further postponement of the implementation of the new exporter definition, due to the COVID-19-crisis. So far, it is an informal notification, but we shortly expect an official publication.
On 20 March the Dutch tax authorities announced as of then a generic three month extension of the payment deadline for all taxpayers in respect of corporate and personal income tax, VAT and wage taxes. This extension still needs to be obtained through a written request. Longer extensions are possible, but in that case indeed the evidence as mentioned in our 18 March 2020 update needs to be provided, for which further details will be published later. More information can be found here: https://www.belastingdienst.nl/wps/wcm/connect/nl/ondernemers/content/coronavirus-belastingmaatregelen-om-ondernemers-te-helpen
https://www.pwc.nl/en/insights-and-publications/tax-news/vat/new-exporter-definition-further-postponed.html
Update 20/03/2020
On 14 March 2020 a Regulation was published that an export license is required for certain protective equipment (e.g. face shields, mouth - nose-protection equipment, gloves, protective garments, protective spectacles & visors).
Update 17/03/2020
Import VAT deferment
When you import goods on a regular basis, it is possible to apply for import VAT deferment, whereby the payment of import VAT is shifted indefinitely to the VAT return and import VAT is no longer due upon customs clearance at the border. Please note that this does not apply for any import duties due.
Spain (Last updated: 31/03/2020)
Update 31/03/2020
On Friday 27 March 2020, the Customs and Excise Duties Department published an Informative Note whereby it gives certain instructions derived from the "State of Alarm" declared by the Spanish Government last 14 March 2020. The duration of these instructions will be fully linked to the duration of the "State of Alarm". In brief, the main purpose of this informative note is to simplify formal requirements (removal of the standard authorisation by the Spanish Drugs and Sanitary Products Agency under certain conditions) for the importation of protection goods such as face masks, boots, gloves or personal protection equipments.