Austria (Last updated: 11/12/2020)
Update 11/12/2020
As part of the 'COVID-19 Tax Amendment Act', a VAT exemption will be introduced for the supply, intra-EU acquisition, and import of COVID-19 in-vitro diagnostic medical devices (testing kits) and COVID-19 vaccines, as well as the supply of services closely linked to such devices or vaccines. However, there will be an option for taxpayers to waive the exemption. The new rules will apply temporarily until 31 December 2022, although at the time of publishing, the precise effective date was still unclear, pending final approval of the EU implementing legislation. The applicability of the reduced 5% VAT rate for hotels and campsites, restaurants, publishing and cultural and artistic activities, which was originally due to expire on 31 December 2020, will be extended until 31 December 2021. In the area of publishing, however, the extension will not apply to newspapers and other periodicals.
Update 14/07/2020
New rules regarding tax payments
Due to COVID-19, the Austrian tax authorities have granted very generous deferrals of payments for all types of taxation. The standard deferral of payment is until the end of September 2020. In addition, no late payment interest will be charged in this period.
https://www.pwc.at/de/newsletter/austrian-tax-news/2020/atn-new-rules-tax-payments.html
Update 17/06/2020
VAT reduction for gastronomy, culture and the publishing sector
On 12 June 2020, the Austrian Minister of Finance announced a new supporting measure for the gastronomy, tourism and cultural sector. Accordingly, a reduced VAT rate of 5% should for example be applicable for supplies of all food and beverages in restaurants and other catering establishments, to access to museums, cinemas or musical events and supplies in the publishing sector. The reduced tax rate of 5 % should apply for a limited period only, from 1 July 2020 to 31 December 2020.
The new supporting measure will therefore also further reduce the VAT rate for unbottled non-alcoholic beverages to 5%, for which it has already been announced at the beginning of June that the tax rate would be reduced to 10% for the period of 1 July 2020 to 31 December 2020.
The legal implementation is outstanding and will include more details on these measures.
Update 14/04/2020
The Austrian Ministry of Finance has announced that the VAT rate for the supply of respiratory face masks will be reduced from 20% to 0%. The new VAT exemption shall apply for the supply and intra-Community acquisition of respiratory face masks carried out after 13 April 2020, but before 1 August 2020. According to the information announced by the Ministry of Finance, appropriate legislation with retrospective effect should be adopted, although so far, no draft legislation has been published.
For more information please contact christine.weinzierl@pwc.com
Update 03/04/2020
The latest information on emergency VAT measures by the Austrian Tax Authorities can be found here https://www.pwc.at/de/newsletter/austrian-tax-news/2020/atn-special-issue-covid-2.html#artikel-3
Update 18/03/2020
Measures of the Austrian Tax Authorities are outlined in this newsletter.
For more information please contact christine.weinzierl@pwc.com
Belgium (Last updated: 19/06/2021)
Update 19/06/2021
The government recently approved a new draft law on temporary support measures in the light of the COVID-19 pandemic, under which existing measures would be extended until 30 September 2021. These include extension of measures already extended last year until 31 March 2021 and subsequently to 30 June 2021, by the Law of 2 April 2021. This includes reduction of the VAT rate to 6% for mouth masks and hand gels (however, please note that according to a decision of the European Commission, full exemption applies on imports until 31 December 2021 and this exemption takes precedence over the rate reduction).
Update 09/04/2021
On 1 April 2021, the Chamber adopted the draft law on temporary support measures in light of the COVID-19 pandemic. Existing measures are extended until the end of June 2021, including the reduction of the VAT rate to 6% for mouth masks and hand gels, and the exemption for notarial powers of attorney. The law also aligns the rates for late payment and moratorium interest on VAT and customs and excise duties with those for income taxes. This means that the rate will drop drastically from 9.6% to 4% and 2% respectively.
Update 02/03/2021`
The government announced that they will be extending some of the current COVID-19 measures in place. The temporary reduced VAT rate of 6% for masks and hydrogels, for example, has been extended for an additional two months until 30 June 2021. A complete overview can be found attached.
Update 23/07/2020
- Taxable persons filing monthly VAT returns on 1 December 2020 are not required to make an advance payment of the VAT due over the month of December 2020
- Taxable persons filing quarterly VAT returns on 1 October 2020 are not required to make an advance payment of the VAT due over the 4th quarter of 2020
Update 16/07/2020
The Belgian government announced a temporary reduction of the VAT rate from 12% to 6% in respect of restaurant and catering services until the end of 2020. This measure has been adopted with effective date 8 June 2020.
Update 10/06/2020
For the VAT return and the intra-Community sales listings relating to the May 2020 transactions, the usual submission and payment deadline will again apply.
By 20.06.2020 at the latest, tax payers must do the following:
- submit the VAT return and the intra-Community declaration for the May 2020 transactions;
- make the payment for the May 2020 transactions.
Tax payers must therefore pay the VAT due of the May 2020 return before the VAT due of the April 2020 return.
In case tax payers have an authorisation for monthly VAT refunds or, as a 'starter', benefit from an accelerated monthly VAT refund, they also must submit the return relating to the transactions of May 2020 by 20.06.2020 at the latest.
https://financien.belgium.be/nl/Actueel/btw-verplichtingen-voor-de-verrichtingen-van-mei-2020-terugkeer-naar-de-gebruikelijke
https://finances.belgium.be/fr/Actualites/obligations-tva-mai-2020-retour-au-delai-habituel-de-depot
Update 05/06/2020
The Belgian government announced a temporary reduction of the VAT rate from 12% to 6% in respect of restaurant and catering services until the end of 2020. This measure is yet to be formally confirmed by the government. Further details to be published shortly.
Update 29/04/2020
Although the deadline for the filing of the March VAT return was extended till 7 May, companies who want to benefit from a monthly VAT refund (i.e. start ups or companies which hold a monthly refund license) should file the March VAT return by 3 May (and apply for the refund)
Guidelines for the monthly VAT return of April 2020
The filing deadline for the monthly VAT return of April 2020 is, as already announced earlier, extended until 05.06.2020.
However companies who want to benefit from a monthly VAT refund (i.e. start ups or companies which hold a monthly refund license) should file the April VAT return by 24 May. There is no generalised accelerated VAT refund mechanism for the April 2020 VAT return.
Update 23/04/2020
From a VAT perspective, there are a number of measures that taxpayers can take to optimise their cash tax position, e.g. review the booking process of purchase invoices to ensure early recovery of input VAT, bad debtors to ensure early refund of output VAT, apply for a monthly VAT refund license, apply for VAT grouping to eliminate VAT payments on intercompany transactions, the use of self-billing with possible application of reverse charge, etc.
Please see further details here https://globalvatonline.pwc.com/news/belgium-covid-19-cash-tax-forecasting
Update 14/04/2020
Today the Belgian government announced an extended submission deadline of the periodic VAT return and intra-Community return of April 2020 till 5 June 2020. The related payment deadline is extended to 20 July 2020.
Update 30/03/2020
All those submitting VAT monthly returns - including those who do not have a monthly refund authorisation and who are not considered to be a 'starter' - will be able to benefit from an accelerated refund of the VAT credit on their current account (with effect from 31 March 2020) under the conditions set out below.
For all monthly VAT filers who wish to benefit from this accelerated refund (starters, licence holders 'monthly refund' and all others), the filing deadline for the February 2020 return will be brought forward to 3 April 2020. This declaration must be submitted via Intervat. The refund will only be made if the box 'Application for refund' is ticked.
Up to and including 3 April 2020, the taxpayer can submit an improved tax return via Intervat in order to change this option.
The other basic conditions will continue to apply, among other things:
- minimum amount of € 245
- ll declarations for the current calendar year must have been submitted
- the administration knows your account number for VAT refunds
- there must be no opposition to this repayment (by '3rd party seizure' or transfer of debt)
Instead of reimbursement on 29 May 2020, or even on 30 June 2020 at the latest, reimbursement under this measure will take place no later than 30 April 2020.
This credit can possibly be subject to a retention or application to another outstanding debt and / or to a 'verification of the VAT credit'.
This submission deadline does not affect the possibility to submit the other monthly declarations of February 2020 (which do not show any credit or for which no refund is requested) on time until 6 April 2020.
https://financien.belgium.be/nl/Actueel/bijkomende-steunmaatregelen-coronacrisis-btw-teruggaven-maandaangiften
Update 20/03/2020
Please follow this link to see the latest measures introduced by the Belgian Tax Authorities in relation to VAT and Customs.
Update 18/03/2020
- February VAT return must be submitted by 6 April 2020* at the latest (instead of 20 March 2020) and any VAT due for February must be paid by 20 May 2020 at the latest (instead of 20 March 2020).
*for starters and for VAT payers with a monthly VAT refund license, the filing deadline is 24 March 2020
- March VAT return or the Q1/2020 VAT return must be submitted by 7 May 2020 at the latest and any VAT due for March must be paid by 20 June 2020 at the latest
- Annual Client Listing for 2019 must be submitted at the latest by 30 April 2020 (instead of 30/03);
- EC Sales listing for February must be submitted no later than 6 April 2020 (instead of 20/03);
- The EC Sales listing for March or Q1/2020 must be submitted no later than 7 May 2020.
Update 12/03/2020
As a result of the COVID-19 crisis, the Belgian government has recently introduced the possibility for companies to request for supportive financial measures. To the extent that companies are facing financial difficulties directly resulting from the coronavirus spread (to be demonstrated and subject to additional conditions), payment arrangements (such as the Belgian corporate taxes, VAT or Belgian professional withholding taxes) can be requested to the competent authorities by filing a formal request prior to 30 June 2020. In order to understand it better and to have a further discussion with PwC consultants, please launch the attached publication, Advance tax payments and recently announced measures from the Belgian government, dated 10 March, 2020.
For more information please contact manuel.van.der.veken@pwc.com or claire.de.lepeleire@pwc.com
Bulgaria (Last updated: 11/08/2020)
Update 11/08/2020
Legislation has now been enacted, with retrospective effect to 1 August 2020, extending the scope of the 9% reduced VAT rate to include beer and wine supplied as part of restaurant or catering services, the use of sports facilities, and tour operators' services.
Update 3/4/2020
No specific measure implemented yet.
For more information please contact vladislav.handzhiev@pwc.com
Croatia (Last updated: 17/04/2020)
Update 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.
Update 20/3/2020
No Indirect tax measures have been put in place as yet.
For more information please contact marko.marusic@pwc.com
Cyprus (Last updated: 11/02/2021)
Update 11/02/2021
As part of the measures implemented by the Cyprus Government to mitigate the effects of COVID-19, Parliament voted on 4 February 2021 a legislative amendment which was published in the Official Government Gazette on 9 February 2021, in relation to the deferral of VAT payments for the VAT returns covering the periods ended 31 December 2020 and 31 January 2021.
Update 29/06/2020
Additional Support Measures to mitigate the effects of COVID-19 in the Cyprus economy - Tourism Industry can be found here
Update 25/06/2020
On 23 June 2020 the Council of Ministers issued a decree by which the VAT rate is reduced from 9% to 5% for the period from 1 July 2020 to 10 January 2021 for the following services:
- restaurant and catering
- hotel accommodation
- passenger transportation
Update 29/05/2020
The Minister of Finance has announced on 28/05/2020 the following proposed measures which require legislative amendments in order to enter into force:
- The VAT rate for (a) restaurant and catering services and (b) hotel accommodation services to be reduced from 9% to 5% for the period 1/07/20 to 10/01/21 in an effort to boost the tourism industry
- The non imposition of late submission penalties for VAT returns which were due on 10/04/20 and 10/05/20 and which were submitted.
Update 16/04/2020
Certain taxpayers have been notified by the Commissioner of Taxation that their VAT return periods have been amended from quarterly to monthly for the period 30 March to 30 June 2020. The monthly returns will be due for submission by the 27th day of the following month and the resulting VAT liability will be payable on the same day as follows:
1. Full amount payable if your activity falls within any of the prescribed by law categories (mainly retailers)
2. All other taxpayers, 30% of the VAT due for the relevant period, with the remaining falling due within the prescribed by law deadline. The 30% prepayment is calculated including any balance remaining from previous periods.
Update 30/03/2020
Temporary suspension of the obligation to pay VAT for reasons of business liquidity, without the imposition of any penalties and interest for the periods ending 29 February 2020, 31 March 2020 and 30 April 2020, until 10 November 2020, provided that the relevant VAT returns are submitted within the prescribed deadlines.
The temporary suspension of the obligation to pay VAT will apply to all taxable persons, established and non established in Cyprus, with the exception of taxable persons whose activities fall within the prescribed trading codes as specified below:
-
35111 - production of electricity
-
36001 - water collection, treatment and supply
-
47111 - Retail sale in non-specialised stores with food, beverages or tobacco predominating
-
47112 - mini markets
-
47191 -retail sale of a large variety of goods of which food products, beverages or tobacco are not predominant
-
47211 - retail sale of fruit and vegetables in specialised stores
-
47221- retail sale of meat and meat products (including poultry
-
47231- Retail sale of fish, crustaceans and molluscs in specialised stores
-
47241 - Baking and pre-baked bread rolls
-
47242- Retail sale of cakes, flour confectionery and sugar confectionery in specialised store
-
47301- retail sale of fuel
-
47411- retailers of computers, peripheral units and software in specialised stores
-
47611 - retail sale of books in specialised stores
-
47621- retail sale of newspapers and stationery in specialised stores
-
47651 - retail sale of games and toys in specialised stores
-
47731- retail sale of pharmaceuticals
-
61101- Cyprus Telecommunications Authority
-
61201- wireless telecommunications activities
-
61301- satellite telecommunication activities
-
61901 - other telecommunication activities
Update 26/03/2020
VAT measures are currently being finalised by the Council of Ministers and the intention is to submit them to The House of Parliament tomorrow for voting.
The measures will not include reduction in the VAT rates. They will include deferral in payment of VAT and tax liabilities as well as extension in the filing of the VAT and tax returns
Update 20/03/2020
The Cyprus government announced that they will not be proceeding with the previously announced measures. The reduction in VAT rates reported earlier is no longer anticipated. The government will review the measures with an intention to proceed with implementation and relevant law updates by Tuesday, 24 March 2020.
Update 18/03/2020
The following VAT measures have been introduced:
The VAT measures will require legislative amendments. The draft law is expected to be voted in Parliament this coming Thursday 19 March 2020.
Obligation to pay VAT Temporary suspension for two months of the obligation to pay VAT for reasons of business liquidity, without the imposition of any penalties and interest. It relates to companies whose turnover did not exceed € 1 million according to tax declarations submitted in 2019 and whose turnover was reduced by more than 25%. It is noted that arrangements will be made so that the debts will be paid progressively until November 11, 2020.
Reduction of VAT rates
Temporary reduction of VAT rates from 19% to 17% for a period of two months and from 9% to 7% for a period of three and a half months, as soon as the relevant legislation has been passed, to enhance the purchasing power of citizens and stimulate consumption.
Direct Tax Measures
Tax return submission
Extension of the deadline for the submission of tax returns due by 31.3.2020 by two months to 31.5.2020.
Please see this newsletter for additional information.
Update 12/03/2020
No measures taken in Cyprus as yet although some developments are expected early next week. The next VAT return filing deadline is 10 April for the VAT return covering the period 1 December 2019 to 29 February 2020.
For more information please contact chrysilios.pelekanos@pwc.com
Czech Republic (Last updated: 26/05/2020)
Update 26/05/2020
On 25 May 2020 the Czech Government agreed on the "anti-COVID" amendment of the Czech VAT Act, which should reduce the VAT rate from 15% to 10% on accommodation and admission to cultural and sports events. The amendment is expected to be discussed and confirmed at Parliament shortly.
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
Update 01/04/2020
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) A waiver of the late payment interest.
b) A waiver of interest connected to the deferral of VAT payment or VAT payment instalment schedule.
c) 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.
d) 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.
e) 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.
- There is a waiver of VAT payment for the free-of-charge delivery of selected medical supplies to mitigate the effects of the coronavirus outbreak. These include, for example, respirators, masks, gloves, face shields, or disinfectants and raw materials for their manufacture. The exact definition of the goods is given in the Financial Bulletin. The waiver covers the period from 12 March 2020 until the end of the state of emergency.
- 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.
Update 30/03/2020
The latest updates on the latest Indirect Tax measures introduced by the Czech Republic Tax Authorities can be found here
Update 15/03/2020
Following the State Security Council decision to severely limit free movement in the Czech Republic (from midnight March 16, 2020 to 6 a.m. March 24, 2020), the Ministry of Finance has published liberation tax package in connection with the state of emergency in the Czech Republic. In the VAT area, the following measures will apply:
- Waiver of sanction for late submission of VAT returns and sanction for non-submission of control statements in all cases where the VAT payer individually requests the waiver and proves the reasons in any way related to coronavirus. Typically, this may be an illness or quarantine of accountants or other key employees whose absence makes it impossible to fulfill VAT obligations;
- General waiver of the second penalty for failure to submit a control report of CZK 1,000 in 2020 without having to prove the reasons related to coronavirus. Today the first fine of CZK 1,000 is automatically waived by law.
- The General Financial Directorate will modify the guidelines to allow for individual waivers of sanctions in relation to control statement, without time limit, if the VAT payer proves the reasons in any way related to coronavirus;
- Flat-rate waiver of an administrative fee of CZK 400 for filing an individual application for deferral of payment or partial payment of VAT liability, if the VAT payer proves the reasons in any way related to coronavirus, until 31 July 2020.
The Ministry of Finance has not extended deadline for submission of the VAT reports or for payment of VAT liability as yet.
For further information please contact tomas.vlk@pwc.com
Denmark (Last updated: 10/06/2020)
Update 10/06/2020
For large companies payment of the VAT for July and August will be deferred as follows:
VAT period
|
Normal payment
|
Deferred payment date
|
July 2020
|
25th of August 2020
|
9th of September 2020
|
August 2020
|
25th of September 2020
|
2nd of October 2020
|
For companies that submit quarterly VAT-returns the payment of the VAT for 3rd Quarter of 2020 will be deferred from the 1st of December 2020 to the 1st of March 2021.
Update 23/04/2020
Small and medium sized companies which have filed and paid VAT on 2 March 2020 for the second half and Q4 of 2019, respectively, may apply for having the amount paid out as an interest-free loan.
Update 17/03/2020
Last week The Minister of Taxation made a proposal to prolong the deadline for reporting and payment of VAT for companies who report on a monthly basis. This assistance is now being extended to the companies who report on a quarterly and semi-annual basis.
Quarterly reporting companies
- These companies are now allowed - but not obligated - to combine the VAT returns for Q1 and Q2 2020 and report/pay the VAT no later than 1 September 2020. This means that companies now have an extra three months to report and pay the VAT for Q1 2020.
- If VAT due for Q1 is negative, companies do not have to wait to submit VAT. They may submit VAT for Q1 as soon as Q2 starts, and the Danish Tax Agency will deal with these in accordance with the general rules for negative VAT due.
Semi-annual reporting companies
- These companies are now allowed - but not obligated - to combine the VAT returns for the whole year 2020 and report/pay the VAT no later than 1 March 2021. This means that companies now have an extra six months to report and pay the VAT for the first half of 2020.
- If VAT due for the first half of 2020 is negative, companies do not have to wait to submit VAT. They may submit VAT for the first half of 2020 as soon as the second half of 2020 starts, and the Danish Tax Agency will deal with these in accordance with the general rules for negative VAT due.
Last week The Minister of Taxation made a proposal to prolong the deadline for reporting and payment of VAT for companies who report on a monthly basis. This assistance is now being extended to the companies who report on a quarterly and semi-annual basis.
Quarterly reporting companies
- These companies are now allowed - but not obligated - to combine the VAT returns for Q1 and Q2 2020 and report/pay the VAT no later than 1 September 2020. This means that companies now have an extra three months to report and pay the VAT for Q1 2020.
- If VAT due for Q1 is negative, companies do not have to wait to submit VAT. They may submit VAT for Q1 as soon as Q2 starts, and the Danish Tax Agency will deal with these in accordance with the general rules for negative VAT due.
Semi-annual reporting companies
- These companies are now allowed - but not obligated - to combine the VAT returns for the whole year 2020 and report/pay the VAT no later than 1 March 2021. This means that companies now have an extra six months to report and pay the VAT for the first half of 2020.
- If VAT due for the first half of 2020 is negative, companies do not have to wait to submit VAT. They may submit VAT for the first half of 2020 as soon as the second half of 2020 starts, and the Danish Tax Agency will deal with these in accordance with the general rules for negative VAT due.
Update 13/03/2020
The following measures have been implemented in Denmark:
- VAT monthly returns (for businesses with a turnover that exceeds DKK 50 mill.)
- March - ordinary deadline 27 April - new deadline 25 May
- April - ordinary deadline 25 May - new deadline 25 June
- May - ordinary deadline 25 June - new deadline 27 July
Quarterly reporting companies
- These companies are now allowed - but not obliged - to combine their VAT returns for Q1 and Q2 2020 and report/pay VAT no later than 1 September 2020. This means that companies now have extra three months to report and pay VAT for Q1 2020.
- If VAT due for Q1 is negative, companie may submit VAT for Q1 as soon as Q2 starts. The Danish Tax Agency will deal with these in accordance with the general rules for negative VAT due.
Semi-annual reporting companies
These companies are now allowed - but not obliged - to combine their VAT returns for the whole year 2020 and report/pay VAT no later than 1 March 2021. This means that companies now have extra six months to report and pay the VAT for the first half of 2020.
If VAT due for the first half of 2020 is negative, companies may submit VAT for the first half of 2020 as soon as the second half of 2020 starts. The Danish Tax Agency will deal with these in accordance with the general rules for negative VAT due.
For more information please contact sandra.erichsen@pwc.com
Estonia (Last updated: 11/06/2020)
Update 11/06/2020
Excise duties temporarily reduced for the period 1 May 2020 to 30 April 2022
In order to mitigate the consequences of an emergency situation, excise duties on certain fuels and electricity will be temporarily reduced.
Update 04/05/2020
Personal protective equipment and other medical equipment (so-called crisis goods) used to prevent and stop the spreading of COVID-19 virus shall be provisionally exempted from the customs duty and VAT. This ensures similar conditions for all types of transactions (import of goods, intra-Community acquisitions, domestic sales). Provisional means that the right to use the 0% rate is linked to a decision made by the European Commission.
Electronic publications: The list of goods and services to which a reduced VAT rate of 9% applies will be extended as of 1.05.2020
https://www.pwc.com/ee/en/press-room/tax-alerts/tax-alert-april-2020.html
Update 24/04/2020
On 15 April 2020 Estonian Parliament approved Supplementary Budget Act that stipulates measures to mitigate the effect of the spreading of corona virus COVID-19. These measures include the following tax measures. Please see further information here https://www.pwc.com/ee/en/press-room/tax-alerts/tax-alert-april-2020.html
Update 23/04/2020
Application of 0% VAT
As was mentioned in the previous update (09.04), personal protective equipment and other medical equipment (so-called crisis goods) used to prevent and stop the spreading of COVID-19 virus shall be provisionally exempted from the customs duty and VAT. This ensures similar conditions for all types of transactions (import of goods, intra-Community acquisitions, domestic sales). Provisional means that the right to use the 0% rate is linked to a decision made by the European Commission.
The import of crisis goods is exempt from customs duties and import VAT on the basis of the decision of the European Commission on 3.04.2020, which determines the exemption period from 30.01 to 31.07.2020 (could be extended if necessary). Neither the legislation of the European Union or Estonia provides an exhaustive list of goods subject to the exemption, but there is an indicative list used by Estonia in granting it. The exemption is not automatic, but is granted by a decision of the Tax and Customs Board upon the submission of the customs declaration.
Intra-community purchase is tax exempt if import of the same goods is tax exempt.
The 0% VAT rate makes it possible to sell the crisis goods (such as protective masks) imported by an Estonian company, without adding VAT, to the hospital (as an entitled person).
The aim of this amendment is to extend the reduced rate of 9% applicable to paper publications to publications on other physical media and to electronic publications (books, academic literature, press publications), which are presently subject to the VAT rate of 20%. Publications on physical media other than paper publications are audiobooks that are stored on a CD or other physical medium and that include the same textual information as a paper or electronic book.
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
It was recently announced by the Ministry of Finance that a reduced 9% VAT rate will be imposed on e-publications (e.g. e-books). The government is also planning to temporarily reduce excise duty rates on certain fuels (e.g. diesel), electricity and natural gas starting from 01.05.2020 until 30.04.2022. The said changes are currently waiting for the approval of the Parliament.
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.
Update 23/02/2020
The Estonian Tax and Customs Board (ETCB) suspends the calculation of interests on their tax arrears for the period of emergency with retroactive effect as from 1 March to 1 May. However, all tax returns must be submitted on time and taxes must be paid whenever it is possible. https://www.emta.ee/eng/interests-tax-arrears-suspended-emergency-situation
Update 16/03/2020
No official measures yet regarding postponement of ITX filing deadlines or payments.
There is an announcement on the tax authorities' website that customs checkpoints at Estonian borders are closed (only electronic filing of customs declarations is available) as well as the authorities' service bureaus everywhere in Estonia. https://www.emta.ee/et/ariklient
For further information, please contact tanja.kriisa@pwc.com
EU (Last updated 15/07/2021)
Update 14/07/2021
The European Council has adopted an amendment to the VAT Directive introducing a temporary VAT exemption on certain importations and supplies in response to the COVID-19 pandemic. The ‘buy and donate’ rules will make it easier for the Commission and EU agencies to buy goods and services in order to distribute them free of charge to Member States in the context of the ongoing public health crisis. To cover the measures addressing the effects of the pandemic that are already underway, the new rules will apply retroactively from 1 January 2021. Once the emergency situation is over, the normal applicable VAT rates will be restored.
Update 21/04/2021
Following on from its actions in relieving from VAT a range of supplies essential to combatting the COVID-19 outbreak, the European Commission is proposing to put in place measures to exempt from VAT goods and services made available by EU bodies and agencies to Member States and citizens during times of crisis. The proposal is to be submitted to the European Parliament for its opinion, and to the Council for adoption.
Update 21/04/2021
The European Commission decided to extend until 31 December 2021 the temporary waiver of customs duties and VAT on imports of medical devices and protective equipment used in the fight against COVID-19. The existing exemption for such supplies had been due to expire on 30 April 2021.
Update 09/02/2021
As the first month of 2021 has passed, it's becoming clear that the roll-out of vaccines and large scale testing will play a significant role in governments' responses to the ongoing global pandemic. In support, the EU Council last year green-lighted a proposal to allow Member States to apply a temporary zero rate to COVID-19 vaccines and test kits. The table below gives an update on the Member States that have implemented (or already expressed their intent to implement) the zero rate, or in some cases a reduced rate. Please see this GVO news item for details.
Update 15/12/2020
The European Commission has welcomed the adoption of measures which will enable Member States to relieve EU hospitals, medical practitioners and individuals of VAT when acquiring coronavirus vaccines and testing kits. Member States will have the option to apply either a zero rate (exemption with credit) or a reduced rate to vaccines and testing kits.
Update 07/12/2020
The EU Council has adopted amendments to the VAT Directive to allow Member States to apply a temporary VAT exemption to COVID-19 vaccines and testing kits, as well as to closely related services. Member States may also apply a reduced VAT rate to testing kits and closely related services if they choose to do so (this possibility is already available for vaccines). The new measures, applicable to 31 December 2022, only concern COVID-19 vaccines authorised by the Commission or by the Member States, and COVID-19 test kits that comply with the applicable EU legislation.
Finland (Last updated: 15/06/2020)
Update 15/06/2020
VAT payments reimbursed as a loan
Companies can request the VAT they have paid in January 2020 - March 2020 to be reimbursed to them as a loan by submitting a request for a payment arrangement. As part of the payment arrangement, the company must agree to repay the VAT at a later date and a 3% interest rate applies to the arrangement.
This payment arrangement can be applied for starting from 26 May 2020. All payment arrangements granted after 25 March 2020 are subject to the relieved terms presented above.
Car tax and excise duties
A payment arrangement cannot be applied for car tax or excise duties, but companies can apply for an extended time for payment for these taxes on the phone or by sending an open letter to the Finnish Tax Authorities. Please note that the extended time for payment cannot be applied for in MyTax.
https://www.pwc.fi/en/services/tax/tax-news/finnish-tax-authorities-actions-to-support-companies-during-the-covid-19-epidemia.html
Update 28/04/2020
Government is to prepare a proposal that businesses can borrow back the VAT they have already paid in the earlier part of the year. VAT could be reimbursed to businesses as a loan that should be paid back to the State over a period of two years. It is expected that the interest rate would be 3 %. Further details to follow.
Update 16/03/2020
Finnish Tax Authorities’ actions to support companies during the COVID-19 epidemia.
On 15 March 2020, the Finnish Tax Authorities published actions to support companies with challenges they might face during the COVID-19 epidemia.
There have been no changes to filing or payment due dates, however the Finnish Tax Authorities have listed the following measures:
- Extension can be applied for filing of the corporate income tax return.
- Penalty related to late filing of the corporate income tax return may not be collected.
- Companies can apply for payment arrangement for taxes and possible late payment interest may not be collected.
- The Finnish Tax Authorities enhance the handling of refunds related to value added taxes (VAT).
- Penalty related to late filing of the VAT return may not be collected.
- In cooperation with the Ministry of Finance, the Finnish Tax Authorities are looking into possible reliefs related to payment arrangements.
The Finnish Tax Authorities are reminding companies to amend the assessed advance taxes where needed. The authorities are also enhancing the handling of the above listed matters.
Applying for extension for filing of tax returns and collection of late filing penalties
Companies can apply for extension for corporate income tax return filing based on specific reasons of which one is a situation where a key person has fallen ill and the company cannot file the tax return by the statutory due date. Extension can be applied for either electronically in MyTax or on a paper form. Please note that the extension needs to be applied for latest on the statutory due date.
There is no possibility to apply for extension for filing of the VAT return, however in case a VAT or corporate income tax return is filed late, companies can request that the Finnish Tax Authorities not collect the late filing penalty.
Payment arrangements
If a company faces difficulties with making their tax payments on time, a payment arrangement can be applied for on the phone or in MyTax. In certain circumstances, for example where a key person has fallen ill, the company can request the Finnish Tax Authorities not to collect late payment interest on tax payments.
Possible reliefs related to payment arrangements are under discussion and the Finnish Tax Authorities will release more information in due course
For further information please contact maarit.pokkinen@pwc.com
France (Last updated: 14/05/2020)
Update 14/05/2020
Due to the COVID-19 pandemic, the deadline for 2019 VAT refunds for non-EU business without VAT-liable operations in France (13th Council Directive 86/560/EEC) will be extended from June 30, 2020 to Septembre 30, 2020
Update 12/05/2020
Following the publication of Law no. 13/2020 on May 7th, concerning, amongst other measures, the application of a reduced 5.5% VAT rate to imports, transfers and intra-community acquisition of masks for respiratory protection and skin disinfectant gel, a ministerial decree has been published which specifies the characteristics of the masks and products subject to the reduced VAT rate of 5.5%, along with Order no. 5335-A/2020, which establishes a series of guidelines to be taken into account in deciding whether skin disinfectant gel can benefit from the reduced VAT rate.
The second Amending Finance Law for 2020 was passed on April 23, 2020. Articles 5 and 6 provide for a reduced VAT rate of 5.5% for intra-EU supplies and acquisitions of:
- Masks and protective clothes adapted to the fight against the spread of the Covid-19 virus of which the list and the technical characteristics are set by a joint ministerial decree of the minister in charge of health and the minister in charge of the budget. It applies to transactions from March 24, 2020 to December 31, 2021 (article 5);
- Products intended to personal hygiene (as for example hydroalcoholic gels) and adapted to the fight against the spread of the Covid-19 virus of which the characteristics are set by a joint ministerial decree of the minister in charge of the budget and the minister in charge of the environment. It applies to transactions from March 1, 2020 to December 31, 2021 (article 6).
The ministerial decree was published on May 7, 2020, and specifies the characteristics of the masks and products intended for personal hygiene, and subject to the reduced VAT rate of 5.5%.
Concerning respiratory protection masks, they must meet the following characteristics:
Concerning the masks for health use:
For those intended to protect the wearer against the inhalation of droplets: masks with the standard EN 149+A1:2009 (for the three categories FFP1, FFP2 and FFP3) or with a stranger standard which is recognized as equivalent for these categories (only if it doesn’t contain an expiratory valve);
For those intended to protect the environment of the wearer by avoiding the projection of droplets: masks with the standard EN 14683+AC:2019 or with a stranger standard which is recognized as equivalent.
Concerning the masks for non-health use:
They must meet the following performance levels: filtration efficiency for 3 microns particles is higher than 70%, the breathability allows a wear for up to 4 hours and the air permeability is higher than 96 liters per square meter per second for a depression of 100 pascal;
The shape allows for a facial fit with nose and chin coverage and doesn’t include sagittal seam;
If they are reusable, the performance levels shall be maintained after at least five washes;
The preceding characteristics are checked under the conditions specified in the Annex of the ministerial decree;
The marketing takes place under the conditions specified in the Annex of the ministerial decree.
Concerning the Products intended for personal hygiene, they must meet the following characteristics:
They fall within the product-type 1 as defined on the Annex V to Regulation (EU) No 528/2012 of May 22, 2012 on the provision on the market and the use of biocidal products;
They are intended to the effective and speed inactivation of the virus on the skin;
They respect one of the following conditions:
The product meets with the standard EN 14476 or;
The product contains, in a concentration expressed as a volume higher than or equal to 60% in the final product, one of the following active substances: ethanol, propan-1-ol or propan-2-ol.
For further information or assistance, please contact the above-mentioned.
Update 07/05/2020
The latest customs alert can be found here
Update 05/05/2020
COVID-19: Tolerance measure for scanned paper invoices sent by e-mail
Update 11/04/2020
The French Tax Authorities published a ruling on April 8, 2020 in order to allow an exemption from regularization of the VAT initially deducted by the companies in respect of their donations of sanitary equipment (masks, hydro-alcoholic gel, protective clothes and respirators) to health, social and medico-social facilities that care for the elderly, disabled or chronically ill, health professionals, government and local authorities services, during the period of the health emergency. This tolerance also applies where such material is acquired with a view to donation. The donor company shall keep in support of its accounting records the information required to identify the date of the donation, the beneficiary, the nature and the quantities of goods donated.
Update 08/04/2020
Please see the latest measures introduced by the French Tax Authorities here
Update 30/03/2020
Measures as at 19 March 2020
Faced with the COVID-19 pandemic, on 12 March 2020 the French government introduced measures to support companies.
These measures notably include extended deadlines for the payment of taxes and/or social security contributions. For companies facing great financial difficulties, a tax holiday can be considered after examination of individual requests.
However, these measures concern only direct taxes (corporate income tax, payroll tax and local taxes: CVAE and CFE).
In this context, no measures have been announced regarding value added tax. Although the initial announcements by the government did not mention the scope of the taxes affected by these measures, a press release from URSSAF (Social Security administration) and DGFiP (French tax administration) dated 13 March 2020 clearly stated that the extended payment deadlines granted to companies only apply to direct taxes.
In particular, a special form has been introduced for companies wishing to request extended payment deadlines or a tax holiday. It is clearly specified in the form that requests for deferred payment or a tax holiday concern "all company taxes excluding VAT and similar taxes".
A document circulated by Medef (National Confederation of the French Employers) to its members dated 14 March 2020 confirms that, as VAT is an indirect tax collected by companies on behalf of the state, "there currently exists no provision for deferred payment". The French tax administration confirmed again this position on March 18, 2020.
Accordingly, the filing of VAT returns and the payment of any VAT due for February 2020 must be made within the normal deadlines in March. The same position should apply to other indirect tax obligations (DEB trade of goods declarations, ancillary taxes due on the VAT return, payment of import VAT, customs duties, etc.).
It should be noted, however, that the tax authorities have undertaken to accelerate the refund of VAT credits.
For additional information, the government has made it possible for companies to contact a dedicated expert at DIRECCTE with remit for each region (https://www.economie.gouv.fr/coronavirus-soutien-entreprises).
Furthermore, the Ministre de l’Action et des Comptes publics (Budget Minister) announced today the suspension of ongoing tax inspections and a moratorium on new inspections. Special arrangements are also being considered for the enforced recovery of tax debts.
It is therefore appropriate to wait for any new measures that may be introduced in the coming days in the rapidly changing context of the fight against the COVID-19 pandemic.
Update 20/03/2020
VAT returns and VAT payments due for the month of February 2020 will follow the usual deadlines during March 2020. The situation is currently the same in relation to other obligations in terms of indirect tax (Declaration of exchange of goods, ancillary taxes due on the VAT declaration, payment of import VAT, customs duties, etc.).
For more information, please contact jose.manuel.moreno@pwcavocats.com
Germany (Last updated 10/06/2021)
Update 10/06/2021
The temporary VAT rate reduction to 7% for restaurant and catering services (with the exception of the sale of beverages) has been extended to 31 December 2022. This temporary measure was originally due to apply until 30 June 2021.
Update 16/02/2021
Following the decisions of the coalition committee on 3 February 2021, further coronavirus aid for businesses is planned, including an extension of the VAT rate reduction for restaurant and catering services (with the exception of the sale of beverages) to 31 December 2022. This temporary measure was originally due to apply until 30 June 2021. The government’s draft bill has been referred to the Finance Committee for further deliberations, and is expected to be dealt with by the Bundestag on 26 February 2021.
Update 13/11/2020
According to a new provision inserted by means of the 'Second Corona Tax Assistance Act' of 29 June 2020, import VAT for which a deferral of payment has been granted under Article 110(b) or (c) of the Union Customs Code, now becomes due, in derogation from the customs regulations, on the 26th day of the second calendar month following the month of the import. Pursuant to Section 27 (31) of the German VAT Act (UStG), the date from which that provision is to be applied for the first time has been announced in a letter from the Federal Ministry of Finance (BMF), which has declared that the regulation be implemented for the postponement period starting 1 December 2020. This means that the due date for imports in the December deferral period will be postponed uniformly from 16 January 2021 to 26 February 2021, and the due dates for subsequent deferral periods will be postponed accordingly.
Update 13/11/2020
In order to mitigate the economic consequences of the COVID 19 pandemic, the Federal Central Office for Taxes (Bundeszentralamt für Steuern, BZSt) has announced that in cases where taxable persons or their authorized representatives were unable to submit their VAT refund applications for the 2019 calendar year by the applicable deadline (which was 30 September 2020 for EU taxable persons and 30 June 2020 for third country taxable persons), the application should be submitted as soon as possible along with the relevant documents (invoices etc.), in accordance with the normal applicable legislation, accompanied by a brief explanation of why the deadline could not be met. However, if the application for calendar year 2019 is submitted after 31 December 2020, stricter requirements will be imposed on the application and the justification, although intra-EU refund applications (documents, invoices etc.) relating to calendar year 2019 may still be submitted after the application deadline, apparently without any further requirements.
Update 22/07/2020
The Federal Cabinet (“Bundestag”) has passed the second Corona Tax Assistance Act. The Bundesrat has also given its approval.
On Monday, June 29, 2020, the Bundestag approved the bill of the coalition factions for a second Corona Tax Assistance Act as amended by the Finance Committee of the Bundestag, becoming effective on 1 July 2020.
The bill contains a number of amendments to the original draft document of the Federal Ministry of Finance as well as some additions.
Full summary of the measures can be found in this newsletter: https://blog.pwc-tls.it/en/2020/07/15/covid-19-summary-of-measures-introduced-in-germany-part-2-second-corona-tax-assistance-act-passed/
For further information and details, please contact the above PWC contacts.
Update 17/06/2020
The German Federal Cabinet has released the draft bill on the crisis management package aimed at mitigating the economic impact of the COVID 19 pandemic. The bill is due to have its first reading at the Bundestag on 19 June 2020, with the 2nd /3rd readings and the final decision of the Bundesrat expected on 29 June 2020. On this timetable the publication in the Federal Law Gazette should occur on 30 June 2020, with the law becoming effective on 1 July 2020.
https://blogs.pwc.de/german-tax-and-legal-news/2020/06/16/federal-cabinet-releases-draft-bill-for-post-covid-stimulus-package/
Update 04/06/2020
The government announced plans last night to reduce the VAT rates in Germany as one pillar of a very extensive recovery package. According to the plans, the standard VAT rate will be reduced from 19% to 16% and the reduced VAT rate from 7% to 5% for the period from 1 July 2020 to 31 December 2020. There is no draft bill at the moment, but the scheduled parliamentary sessions would allow for a respective law to pass the legislative procedure in time. This clearly puts enormous pressure on companies to adjust their ERP systems in time.
Update 18/05/2020
Applications for the refund of German input VAT incurred in 2019 by non-EU taxable persons must be lodged until 30 June 2020. This means that the electronic VAT refund application itself and the original invoices and import documents must have reached the responsible Federal Central Office for Taxes (Bundeszentralamt für Steuern, or BZSt) within that deadline.
However, the BZSt, “in order to mitigate the economic consequences of the COVID-19 pandemic”, seems exceptionally be willing to accept applications and original documents received after the deadline expiry in cases where taxable persons or their authorized representatives were not able to submit the applications in time. This is subject to condition that the applications and corresponding original documents are submitted by the applicant as soon as possible, and that a brief explanation is provided why the application deadline could not be met. However, it should be noted that applications (and original documents) for the refund of input VAT incurred in 2019 received by the BZSt after 30 September 2020 will only be accepted under far stricter conditions, including but not limited to a detailed explanation for the overstepping of the deadline.
Update 11/05/2020
Government releases draft Corona – Tax Assistance Bill
https://blogs.pwc.de/german-tax-and-legal-news/2020/05/08/government-releases-draft-corona-tax-assistance-bill/#more-3427
Update 23/04/2020
Application procedure with regard to tax relief due to the effects of coronavirus
The Länder have published information for tax relief on their websites. Most have also published application forms.
Some of the Länder will also provide a refund of the special advance payment of value added tax. This relates to the VAT provision that entrepreneurs must generally file a preliminary VAT return with their local tax office by the tenth day of the calendar month. The entrepreneur can apply to have the filing date for the return delayed by a month for the calendar year. This permanent extension is subject to a special advance payment amounting to 1/11 of the total VAT prepayments payable in the previous calendar year.
CUSTOMS INFORMATION:
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-news/2020/04/22/covid-19-summary-of-measures-introduced-to-combat-the-effects-of-the-coronavirus-covid-19-sars-cov-2/
Update 16/04/2020
In another letter of 9 April 2020, the Federal Ministry of Finance, inter alia, has concretized the previous announcement, mainly focusing on civic action to combat the pandemic as such and to mitigate its social and economic consequences (see the update of 07/04/2020). The letter provides for a number of measures, including but not limited to several VAT provisions. The latter mostly concern the provision of material resources, personnel resources, premises and other services against payment or free of charge. In addition to a simplification, which may be significant for the application of the reduced rate of VAT e. g. for charitable businesses, it comments on the scope of application of certain VAT exemptions, especially of the medical sector, with respect to the provision of human and technical resources as well as of rooms. Also, in the case of the free provision of medical supplies and free provision of personnel for medical purposes by companies to institutions which make an indispensable contribution to overcoming the corona crisis, such as in particular hospitals, clinics, doctors' practices, emergency services, nursing and social services, old people's and nursing homes and other public institutions such as the police and fire brigade, no taxation will be in place for equity reasons. These regulations, as the Ministry explains, would be applicable retroactively from 1 March 2020 (not, as initially announced, from 3 April) until the end of the year at the latest.
Update 07/04/2020
The German Federal Ministry for Finance has issued an announcement that, as of 3 April until the end of 2020, donations of protective masks and disinfectants to hospitals, medical practices and nursing homes will not be subject to VAT. The same exemption applies if taxable persons second their staff for medical purposes without consideration, and for donations of medical equipment to emergency medical services, medical social workers, retirement homes, or to police and fire brigades. In addition, as the German customs authorities have decreed, the exemption from duties for the import of humanitarian assistance goods under certain conditions will be granted to a larger number of importers.
The Federal Ministry of Finance has also issued a FAQ listing explaining the decree dated 19 March 2020 in more detail. The requirement of persons “directly” affected by the effects of the Coronavirus pandemic seems to be interpreted broadly. Apart from the measures already mentioned in the said decree, inter alia the FAQ introduce the repayment of the special prepayment for permanent filing extension as a general measure apparently applicable in all German Federal States, and, under certain additional conditions such as an application, allow for a prolongation of the deadline e. g. for the annual VAT return 2018 until 31 May 2020 for taxable persons represented by tax advisors and equated persons. It should be noted that, as the FAQ provide, penalties for late filing of returns shall not be levied until further notice.
Update 30/03/2020
The tax administrations of all German Federal States have published application forms for deferment of tax etc. or at least some guidance about placing such an application. In addition, an increasing number of Federal States allows for a refund of the special prepayment for permanent filing extension (which becomes due upon application of permanent extension of the deadline for filing monthly VAT returns). This refund does not affect the (extended) deadlines for submitting monthly VAT returns.
Update 23/03/2020
On 19 March 2020, the German Federal Ministry of Finance has issued a decree about tax measures to take account of the effects of the SARS-CoV-2 virus. This decree deals with deferral and enforcement measures and the adjustment of advance payments. While it is applicable for most taxes levied in Germany (including but not limited to income and corporation tax and VAT), the below text deals with the decree as far as VAT is concerned.
The measures are limited to taxable persons "directly" affected by the effects of the coronavirus pandemic. It is also necessary that a taxable person is affected "to a considerable extent". However, these conditions shall not be put to an in-depth test by the tax office. Upon application (and if these conditions are met), deferment for VAT for which the taxable person has become liable, or will become liable, can be granted upon application until 31 December 2020. As the Federal Ministry of Finance makes clear, no strict requirements are to be set when reviewing the conditions for deferral. For VAT that becomes liable after the above date, the application must be substantiated in detail. Please note that an application for deferral should be filed in time, to avoid overstepping of time limits for payment and possible penalties for late payment. The decree also deals with a possible suspension of enforcement measures until 31 December 2020 as well as of the waiver of penalties for late payment.
Update 16/03/2020
The Government has published plans to postpone the due date for tax payments upon application of the taxpayer, free of charge.
In order to improve companies’ liquidity situation, the options for deferring tax payments and reducing prepayments will be enhanced, and enforcement rules will be adapted. Overall, businesses will be able to defer billions of euros in tax payments. The Federal Ministry of Finance has already initiated the necessary coordination process with the Länder. The measures are described in detail below:
- It will be easier to grant tax deferrals. Revenue authorities will be able to defer taxes if their collection would lead to significant hardship. The revenue authorities will be instructed to not impose strict conditions in this respect. This will support taxpayers’ liquidity, because the timing of tax payments will be delayed.
- It will be easier to adapt tax prepayments. As soon as it becomes clear that a taxpayer’s income in the current year is expected to be lower than in the previous year, tax prepayments will be reduced in a swift and straightforward manner. This will improve the liquidity situation.
- Enforcement measures (e.g. attachment of bank accounts) and late-payment penalties will be waived until 31 December 2020 if the debtor of a pending tax payment is directly affected by the coronavirus. With regard to taxes that are administered by the customs administration (e.g. energy duty and aviation tax), the Central Customs Authority (Generalzolldirektion) has been instructed to make appropriate concessions to taxpayers. The same applies to the Federal Central Tax Office (Bundeszentralamt für Steuern), which will proceed accordingly with regard to insurance tax and value added tax, which fall within its remit.
For further information please contact frank.gehring@pwc.com
Greece (Last updated: 30/06/2021)
Update 30/06/2021
Following the joint announcement by the Ministry and AADE (Independent Authority of Public Revenues), companies must proceed on a phased basis to the electronic transmission of their documents to myDATA and the interconnection of their cash registers with 'taxisnet' from September 2021, based on the type of their accounting books and annual revenues. More specifically, the mandatory transmission of business documents to the myDATA platform will start from 1 October 2021, and the interconnection of tax mechanisms with AADE is postponed from the original implementation date of 1 July 2021 to 1 September 2021, due to the on-going COVID-19 pandemic.
Update 24/11/2020
The super reduced VAT rate of 6% for masks, gloves, antiseptic solutions etc, that was due to expire on 30 December 2020, has been extended to 30 April 2021. The VAT rate was reduced to 6% earlier this year on specific products needed to protect against coronavirus and to prevent its transmission. The measure was introduced by virtue of art 1 of Legislative Act dated 20.3.2020 and broadly concerns masks, gloves, antiseptic solutions, wipes, soap, and ethyl alcohol if used as a raw material by the industry for the production of antiseptics.
Update 20/11/2020
The Greek Parliament has voted to extend the current COVID-19 emergency super reduced VAT rate of 6% for masks, gloves, antiseptic solutions, etc until 30 April 2021. The measure had been due to expire on 30 December 2020, and will take effect when the implementing Bill is published in the Government Gazette.
Update 25/06/2020
VAT reduction from 24% to 13% for passenger transport, coffee and non-alcoholic drinks and the provision of services in cafes, restaurants, pastry shops etc. Furthermore, VAT is reduced to 6% for movie tickets. (Art.11 - L.4690/2020 & Ε.2080/2020) for the period 1 June to 31 October 2020.
VAT on the tourist package is reduced from 80/20 (80% to 13% and 20% to 24%) to 90/10. (Government announcement) for the period 1 June to 31 October 2020.
Provision of a 25% discount on certified tax liabilities with payment date within May 2020, in case the remaining 75% is paid in due time, with the exemption of VAT and withholding taxes. (Art. 3 L. 4690/2020) (Only for tax liabilities paid within May 2020)
Please see the link below for further information on extensions to payments of VAT https://www.pwc.com/gr/en/newsletters/tax-index/tax-and-legal-measures-covid19.html
Update 10/06/2020
VAT rate reduction from 24% to 13% for taxis and transport is effective as of 1 June 2020 and only up to 31 October 2020
Update 22/05/2020
As per the Decision 1107/2020, the VAT payment deadlines expired within 1.5.2020-29.5.2020 are extended to 30.9.2020 for all entities, whose active main activity or secondary activity with revenues higher than those of the main activity on 20.3.2020 correspond to the NACE activity codes affected by the COVID-19 pandemic. In this respect, there will be no penalties or interest due during this period.
Update 14/04/2020
VAT rate reduction from 23% to 6% for products needed to protect against coronavirus and to prevent its transmission implemented for the period from 20 March 2020 to 30 December 2020. For detailed list of products included in this measure, please check our Globesearch section.
Update 09/04/2020
Please see the latest updates on emergency measures in relation to Indirect Tax here https://www.pwc.com/gr/en/newsletters/tax-index/tax-and-legal-measures-covid19.html
Update 27/03/2020
- Extension of deadlines for the payment of tax debts and suspension of payment of certified tax debts and installments, and the payment of VAT debts and suspension of payment of certified VAT debts and installments.
VAT exemption on supply of goods and/or provision of services to the Greek State in the form of donations of movable and immovable property for charitable purposes, that could also cover some cases of donations for the protection of the transmission of COVID-19.
- Accelerated refunds of up to EUR 30,000 for income tax and VAT for all open tax audit cases.
- VAT reduction from 24% to 6% as of 20 March 2020 for products needed to protect against coronavirus and to prevent its transmission.
- Extension of suspension of VAT payment for September and October for businesses that had transactions with “Thomas Cook Group
- Extension of the deadline for the submission of a property correction statement.
- Extension of reporting of tax documents for the purposes of information cross-checking (MYF).
- The calculation of the Uniform Tax on Ownership of Real Estate Property will be based on the currently applicable objective values.
Update 16/03/2020
According to article 1 of Legislative Decree No FEK Α' 55/11-03-2020, for entities affected financially due to the spread of the coronavirus COVID-19, the VAT payment deadline may be extended and the collection of debts established through the filing of (debit) VAT returns may be suspended. During the time extension, the amounts due are not subject to interest or surcharges. The affected entities per sector and region and the time extension are defined by Decision of the Minister for Finance, upon the recommendation of the Independent Authority for Public Revenue.
For the time being, no Decisions have been published.
Hungary (Last updated: 29/06/2020)
Update 29/06/2020
The Hungarian Tax Authority has recently published an official statement regarding the data reporting obligations applicable as of 1 July 2020 – related to the online invoice data reporting obligation, and the domestic recapitulative statement (M sheets of the VAT return) requirements – and announced a moratorium period for penalties. Please see further information here
Update 22/06/2020
As of 1 July 2020, the threshold of HUF 100,000 will be decreased to zero, therefore all of domestic purchase invoices should be indicated on the domestic recapitulative statement in which case the taxpayer exercises its VAT deduction right in the current period.
Please see further information here https://www.pwc.com/hu/en/pressroom/2020/significant_changes_filing_VAT_returns_invoice_data_reporting_from_1_July_2020.html
Update 09/06/2020
Significant changes in the filing of VAT returns and in invoice data reporting via the Online Invoicing Platform from 1 July 2020
https://www.pwc.com/hu/en/pressroom/2020/significant_changes_filing_VAT_returns_invoice_data_reporting_from_1_July_2020.html
Update 04/05/2020
Government Decree No. 140/2020 (IV. 21) on Tax Facilities Necessary to Mitigate the Economic Impact of the Coronavirus Pandemic within the framework of the Economic Relief Action Plan, has been published in Magyar Közlöny (the official government gazette). The new Decree contains provisions on the facilitative tax measures introduced in connection with the current epidemic situation, and on the adjustment of tax-related deadlines and due dates. In addition to these facilitative measures, the Ministry of Finance announced that certain SMEs may receive their VAT refunds in a maximum of 30 days instead of the previous 75 days, and that period may be further reduced to 20 days for companies that qualify as 'reliable taxpayers'. However, this measure does not apply to 'high-risk taxpayers', who will continue to receive their VAT refunds within the 75 day time limit.
Please see our news item for further information https://globalvatonline.pwc.com/news/government-decree-on-covid-19-tax-measures
Update 30/04/2020
The special tax on retailers has been re-established for the duration of the COVID-19 crisis. However, the new enacting legislation extended the scope of the tax to foreign based e-commerce companies, with the result that popular online sellers could also become taxable entities during the period of the COVID-19 crisis. Generally, the basis of assessment equals the total sales revenue derived from goods dispatched to Hungary with some adjustments, with tax rates ranging from 0.1% to 2.5% depending on the level of turnover, and a tax exemption for retailers with a tax base of less than HUF 500 million (approx. EUR 1.4 million).
The tax payable is the proportionate amount of the special retail tax calculated for the whole financial year, but covering only the days of the crisis period (as defined by the Hungarian Government). Currently, Hungary is deemed to be in crisis from 11 March for an unspecified period.
The tax return has to be submitted within 30 days of the end of the financial year, or the last day of the crisis period (whichever comes first).
Taxpayers are also obliged to pay tax advances on a monthly basis with the first advance payment due on 31 May 2020.
Please see this newsletter - link - for further details.
Update 24/04/2020
As part of its COVID-19 response, Hungary has introduced a 'special tax on credit institutions', based on the special tax on financial institutions. The tax base is the part of the adjusted balance sheet total, calculated based on the annual financial statements prepared for the second financial year preceding the tax year, exceeding HUF 50 billion. The tax rate is 0.19%.
https://www.pwc.com/hu/en/pressroom/2020/special-tax-of-credit-institutions-due-to-COVID-19.html
Update 23/04/2020
The special tax on retailers has been re-established for the duration of the COVID-19 crisis. However, the new enacting legislation extended the scope of the tax to foreign based e-commerce companies, with the result that popular online sellers could also become taxable entities during the period of the COVID-19 crisis. Generally, the basis of assessment equals the total sales revenue derived from goods dispatched to Hungary with some adjustments, with tax rates ranging from 0.1% to 2.5% depending on the level of turnover, and a tax exemption for retailers with a tax base of less than HUF 500 million (approx. EUR 1.4 million).
https://www.pwc.com/hu/en/pressroom/2020/corona-special-reatail-tax.html
Update 17/03/2020
No official measures have been put in place yet.
For more information please contact laszlo.deak@pwc.com
Ireland (Last updated: 15/10/2020)
Update 15/10/2020
Following the announcement of Ireland's budget for 2021, the supply of certain goods and services to which the 13.5% VAT rate currently applies will become liable to VAT at 9% from 1 November 2020 until 31 December 2021. This will mainly affect the supply of restaurant and catering services, guest and holiday accommodation, and various entertainment services such as admission to cinemas, theatres, museums, fairgrounds and amusement parks. VAT at 9% will also apply to hairdressing and certain printed matter such as brochures, maps and programmes. The 9% rate applying to magazines and newspapers and to the provision of sporting facilities will remain unaffected.
As previously reported, the standard VAT rate was reduced from 23% to 21% for a 6 month period commencing 1 September 2020.
Update 30/07/2020
Ireland has announced the extension of the following concessional treatments up to 31 October 2020.
- The application of the zero rate of VAT to the supply to the HSE, hospitals and other health care settings of personal protection equipment and medical equipment for use in the treatment of patients with Covid-19.
- The application of the zero rate to the supply and intra-Community acquisition of personal protection equipment (PPE), thermometers, hand sanitiser, medical ventilators and specialist respiratory equipment such as respirators for intensive and sub-intensive care and other oxygen therapy apparatus including oxygen tents and oxygen when supplied to or acquired by the HSE, hospitals, nursing homes, care homes, GP practices and the like, for use in the delivery of COVID-19 related health care services to their patients.
- Where a business donates goods as specified in Paragraph 2 above free of charge to the HSE, hospitals, nursing homes, and other healthcare facilities for use in the delivery of Covid-19 related health care services to their patients, those supplies are considered to be self-supplies and liable to the temporary zero rate of VAT.
- Where a business donates hot meals free of charge to charities and health care providers involved in the response to the Covid-19 crisis for distribution to vulnerable groups or for consumption by frontline staff, Revenue concessionally disregard those supplies for the purposes of determining the business’s entitlement to deductibility.
- Where a business donates food products (including cold food takeaways) and non-alcoholic drinks free of charge to charities and health care providers involved in the response to the Covid-19 crisis for distribution to vulnerable groups or for consumption by frontline staff, Revenue concessionally not require the business to apply the normal self-supply rules and will allow the business to maintain an entitlement to deductibility in respect of those donations.
Update 27/07/2020
Ireland has announced Irish VAT rate change for 6 months - decrease from 23% to 21% with effect from 1st September 2020.
https://www.gov.ie/en/publication/fc8f1-building-confidence-and-solidarity/
The decision amending “Decision (EU) 2020/491 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” (Extension of the initial validity period until 31 October 2020) was approved by the European Commission and notified to Member States last week.
Update 22/07/2020
he deadline for charities to apply for compensation under the scheme is normally 30 June each year. Due to the impact of COVID-19, the closing date for submission of claims this year has been extended to 31 August 2020.
https://www.revenue.ie/en/tax-professionals/ebrief/2020/no-1402020.aspx
Update 29/06/2020
Revenue publishes 2019 Annual Report
Update 26/05/2020
COVID-19: Warehousing of tax debts and suspension of interest charges https://www.pwc.ie/issues/covid-19/warehousing-tax-debts-suspension-interest-charges.html
Update 20/05/2020
Update from the local tax authority can be found here
Update 18/05/2020
- Revenue have confirmed that the supply of temporary emergency accommodation to the State/HSE/State Agencies for the purposes of being used as emergency accommodation as necessary to combat COVID-19 Revenue falls within the existing exemption for temporary emergency accommodation. They have also confirmed concessional arrangements concerning any related Capital Goods Scheme adjustments.
- Where a business makes the following donations Revenue will concessionally disregard these supplies for the purposes of determining the business’s entitlement to deductibility. This concessional treatment will apply from 9 April 2020 up to 31 July 2020 and is subject to review:
- Donations of hot meals free of charge to charities and health care providers involved in the response to the Covid-19 crisis for distribution to vulnerable groups or for consumption by frontline staff.
-Donations of food products (including cold food takeaways) and non-alcoholic drinks free of charge to charities and health care providers involved in the response to the Covid-19 crisis for distribution to vulnerable groups or for consumption by frontline staff.
Update 05/05/2020
Warehousing of VAT and Payroll Tax debts for 12-months
On 02/05/2020 the Minister for Finance and Public Expenditure and Reform, Paschal Donohoe TD, announced a further range of economic measures in response to COVID-19. These include legislating to permit Revenue to ‘warehouse’ VAT and Payroll tax debt that arose on foot of the COVID-19 related restrictions. Following this announcement, Revenue has assured businesses severely impacted by COVID-19 that it will continue to work with them to agree payment arrangements that support both the capacity of the business to resume trading as well as the national recovery, post COVID-19.
While the finer details of this ‘warehousing’ measure have still to be worked out, Revenue has confirmed the following:
- COVID-19 related VAT and Payroll tax debts, due from 1 March 2020 to the date when sectoral restrictions are lifted, will be parked for a period of 12 months
- no interest will accrue on the tax debts during the 12 month period
- thereafter, the COVID-19 related tax debts will carry a reduced interest rate of 3% (down from 10%), until the debt is paid
- the timeframe allowed to pay the ‘warehoused’ debt will be flexible and determined by the ability of the business to pay both COVID-19 related debts as well as meeting its ongoing tax liabilities as they arise in the normal course
- for the warehousing arrangement to apply, all returns must be filed in accordance with the Revenue guidance that has applied since the start of the current pandemic.
Update 20/04/2020
Application of Zero% VAT rate to the supplies of PPE & medical Equipment to Health Executive, Hospitals and other Health Care Settings.
Introduction following a request from the Minister for Finance and Public Expenditure and Reform, Revenue will allow the application of the zero rate of VAT to the supply to the HSE, hospitals and other health care settings of personal protection equipment and medical equipment for use in the treatment of patients with Covid-19.
Revenue will permit the zero rate to apply to the supply and intra-Community acquisition of the goods listed below when supplied to or acquired by the Health Services Executive, hospitals, nursing homes, care homes, GP practices and the like, for use in the delivery of COVID-19 related health care services to their patients:
- personal protection equipment (PPE)
- thermometers
- hand sanitiser
- medical ventilators and specialist respiratory equipment such as respirators for intensive and sub-intensive care and other oxygen therapy apparatus including oxygen tents
- oxygen.
Supplies to any other operators even if they are intended for onward supply to a health care provider do not qualify and are liable at the standard rate.
This concessional treatment will apply from 9 April 2020 up to 31 July 2020, subject to review.
In addition to the normal record keeping requirements, suppliers of these goods will need to satisfy themselves that their customer is eligible to receive zero rated supplies. The goods being supplied at the zero rate of VAT should be clearly identified and described on the invoice
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
Update 06/04/2020
Please see this link for an update on Customs Duty and VAT
Update 03/04/2020
The charging of interest on late payments is suspended for March/April VAT and April PAYE (Employers) liabilities.
This is in addition to the earlier announcement that the charging of interest on late payments is suspended for January/February VAT and both February and March PAYE (Employers) liabilities.
Update 16/03/2020
Small and medium enterprise (SME) Businesses*
- Tax Returns: businesses experiencing temporary cash flow difficulties should continue to send in tax returns on time.
- Application of Interest: the application of interest on late payments is suspended for January/February VAT and both February and March PAYE (Employers) liabilities.
- Debt Enforcement: All debt enforcement activity is suspended until further notice.
- Tax Clearance: current tax clearance status will remain in place for all businesses over the coming months.
Larger Businesses (Non SME Businesses)
Businesses, other than SMEs, who are experiencing temporary cash flow or trading difficulties should contact the Collector-General’s office on (01) 7383663. Alternatively, these businesses can engage directly with their branch contacts in Revenue’s Large Corporates Division or Medium Enterprises Division.
Customs
Critical pharmaceutical products and medicines will be given a Customs ‘green routing’ to facilitate uninterrupted importation and supply.the Minister for Finance has said that "larger companies are expected to make payments as normal but he would expect that Tax Authority might need to review the position before April and extend it more broadly.
The Minister did fully recognise that the hospitality and tourism sectors are immediately and heavily impacted by the current situation and he would not rule anything in or out for any sector at this stage.
Further measures may be announced in the coming weeks.
For further information, please contact sean.brodie@pwc.com
Italy (Last updated: 28/05/2021)
Update 28/05/2021
Law Decree no. 73 of 25 May 2021 ("Sostegni bis" - Urgent measures related to the emergency from COVID-19, for businesses, work, young people, health and local services) legislates for the prompt recovery of VAT on outstanding receivables towards customers subject to insolvency proceedings and amends art. 26 of Presidential Decree n. 633/1972. As stated in the second paragraph of art. 18, the new provisions apply in relation to insolvency proceedings starting after May 26, 2021.
Update 28/01/2021
Law no. 178/2020 concerning the “Budget of the State for the financial year 2021 and multi-year budget for the period 2021-2023” was approved on 30 December 2020. Among other measures, the supply of COVID-19 diagnostic equipment meeting the prescribed regulatory requirements, and the supply of services strictly related to such equipment, are exempt from VAT with the right of deduction until 31 December 2022. The supply of COVID-19 vaccines authorized by the European Commission or by the Member States and the supply of services strictly related to such vaccines, are also exempt from VAT with the right of deduction from 20 December 2020 to 31 December 2022.
Update 18/11/2020
Law Decree n. 129/2020, which took effect from 21 October 2020, modifies Article n. 68 of Law Decree n. 18/2020 (the so called 'Decreto Cura Italia'), which sets forth the regime for the suspension of payment terms for the payment of taxes attributed to the Collector Agent. Under the new rules, the deadline for the suspension of the activity of the Collector Agents, originally set on October 15th, 2020, has been postponed to December 31st, 2020. With specific regards to the collection of taxes and other non-tax debts, the deadlines for payments that fall between March 8th, 2020 and December 31st, 2020, and that are related to tax files issued by the Collector Agents, are suspended.
Update 16/11/2020
On November 9, 2020, Decree Law no. 149 ('Ristori bis Decree') was published in the Official Gazette of the Italian Republic and entered into force from the same date. The Decree aims to support specific business activities suspended by the President of the Italian Council of Minister dated November 3, 2020 ('DPCM 03.11.2020'). Among the main measures introduced, Article 7 of the Ristori bis Decree provides for deferral of tax payments. Eligible beneficiaries can make suspended payments by making one instalment by March 16, 2021, or up to a maximum of four equal monthly instalments starting from March 16, 2021. No penalties and interest shall apply to deferred payments. However, if payments have already been made, they cannot be refunded.
Update 16/10/2020
The Italian tax authorities have issued a clarification regarding the VAT treatment of supplies of medical devices and personal protective equipment necessary to contain and manage the COVID-19 emergency. The tax authorities' statement clarifies the tax breaks introduced by Law Decree n. 34, and confirms that supplies of surgical masks and other qualifying personal protective and medical equipment used in the fight against COVID-19 are exempt from VAT with a right of deduction until 31 December 2020, while starting from 1 January 2021, the 5% reduced rate will apply to such supplies.
Update 15/06/2020
On 19 May 2020 the Law Decree no. 34 has been published in the Official Gazette (“Rilancio Decree“). The new emergency decree is in line with the previous Cura Italia and Liquidità Decrees, introducing inter alia measures to support the liquidity the capitalization of enterprises, incentives and tax credits as well as measures in the context of indirect taxation, tax assessment and tax litigation.
The provision postpones further to 16 September 2020 the deadline to execute the following payments of taxes and social security contributions, previously suspended by Liquidità Decree and Cura Italia Decree and detailed therein:
- payments due by enterprises and professionals having revenues and compensations not higher than 50 million euros in the preceding fiscal year which have had a reduction of their turnover for an amount higher than 33% in the months of March and April 2020 compared to the same months in 2019;
- payments due by enterprises and professionals having revenues and compensations higher than 50 millions euros in the preceding fiscal year which have had a reduction of their turnover for an amount higher than 50% in the months of March and April 2020 compared to the same months in 2019;
- payments due by enterprises and professionals which started their activity after 31st March 2019 and non-commercial entities including non-profit entities and recognized ecclesiastical entities, which carry out institutional activities of general interest not as business activity;
- VAT payments due by VAT taxpayers located in Bergamo, Brescia, Cremona, Lodi and Piacenza provinces irrespective of the amount of revenues and compensations of the previous fiscal year, having a decrease in the turnover amount higher than 33% in the months of March and April 2020 compared to the same months in 2019;
- payments due by small taxpayers having income not higher than €400,000 in the previous FY which did not subjected to withholding tax at source their income;
- payments due by companies pertaining to tourism sector and other sectors detailed in the previous provision;
- payments due by subjects operating within the sport sector;
- payments due by minor taxpayers having income not higher than €2,000,000 in the previous FY;
- VAT payments due by entrepreneurs and professionals having legal seat, tax domicile or operating seat within the Bergamo, Brescia, Cremona, Lodi and Piacenza provinces and payments due by those subjects mentioned within Ministerial Decree dated 24 February 2020.
The suspended payments must be made by 16 September 2020 in full, or in four equal installments starting from 16 September 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 124 - Reduced VAT rate for supplies of goods necessary to face emergency due to COVID-19
The 5% VAT reduced rate has been introduced for supplies of medical devices or other devices intended for individual protection. The same supplies will be VAT exempt with right to deduction until 31 December 2020.
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 133 - Postponement of Plastic Tax and Sugar Tax
The Financial Law for 2020 introduced the consumption tax on single use plastic products (Plastic Tax) and on sweetened soft drinks (Sugar Tax). The effectiveness was fixed in July 2020 for Plastic Tax and October 2020 for Sugar Tax. The Rilancio Decree defers the effectiveness for both consumption tax in January 2021.
Article 140 - Storage and telematic transmission of daily fee data
The Rilancio Decree extends to January 1, 2021 the disapplication of the penalties provided by article 2, paragraph 6-ter, Legislative Decree no. 127/2015 to taxable persons, with a turnover lower than 400,000 euros, who are not able to adopt a telematic cash register. It remains the obligation, for these subjects, to issue tax receipts or cash till receipt and to register the considerations pursuant to Article 24, Presidential Decree no. 633 of 1972 and to transmit the data of the daily fees to the Italian tax authorities on a monthly basis.
In addition, the decree provides for a postponement from July 1, 2020 to January 1, 2021 of the deadline for the adaptation of telematic recorders for the telematic transmission of daily consideration to the Health Insurance system referred to in Article 2, paragraph 6-quater, Legislative Decree no. 127/2015.
Article 141 - Tax receipts lottery
According to the Rilancio Decree, the enter into force of “tax receipts lottery” will be postponed from 1 July 2020 to January 1 2021.
Briefly, the “tax receipt lottery” is introduced within the context of the obligation to transmit the daily considerations to the Italian tax authorities.
Article 142 - Postponement of the starting date of the service for the drawing up by the Italian tax authorities of pre-filled drafts of the VAT registers and periodic VAT settlements
The Rilancio Decree provides for a postponement from 1 July 2020 to 1 January 2021 in relation to the introduction, on an experimental basis, of the "pre-filled" drafts of the VAT registers and periodic VAT settlements pursuant to art. 16, Decree Law 124/2019 (conv. Law 157/2019), amending art. 4, Legislative Decree 127/2015.
Article 143 - Postponement of the automatic stamp duty settlement procedure on electronic invoices
The Rilancio Decree postpones from 1 January 2020 to 1 January 2021 the application of the provisions of article 12-novies, Decree Law no. 34/2019, which introduces a procedure for the Italian tax authorities to integrate the stamp duty on electronic invoices sent through the Interchange Data System that do not include the annotation of payment of the stamp duty tax.
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 07/05/2020
On 6 May 2020 the Italian tax authorities (Circular letter dated 6 May 2020, no. 11/E) clarified that the suspension of VAT filings other than VAT payments provided by article 62, paragraph 1, Law Decree no.18/ 2020 (so called "Cura Italia Law Decree") as converted, applies not only to fixed establishments of non resident businesses, but also to non-established businesses directly registered for VAT purposes in Italy as well as those who appointed an Italian fiscal representative. Such clarification overcame the previous restrictive interpretation of the Italian tax authorities (Circular letter issued on 3 April 2020, no. 8/E).
Update 06/05/2020
The latest summary and clarifications on the emergency measures for Indirect Taxes can be found in this article issued by PWC Italy
Update 11/04/2020
General postponement of VAT payments
According to the decree so called "Cura Italia", VAT payments due by March 16, 2020, were postponed to March 20, 2020.
According to the "Liquidity Decree", no penalties nor interests are due where the above mentioned payments will be carried out by April 16, 2020.
Such measure applies to both established and not established businesses. VAT payments due in April and May 2020
VAT payments due in April and May 2020 by taxable persons:
a) who are having tax domicile, registered office or place of business in Italy and
b) whose previous fiscal year revenues did not exceed € 50 million and
c) which can prove a decrease in their turnover for an amount higher than 33% in March 2020 and April 2020 compared to March 2019 and April 2019,
are suspended until June 30, 2020.
This VAT due can be then paid in full or in five installments.
- For the above mentioned taxable persons with revenues higher than 50 millions euros, the suspension is allowed in case the reduction of their turnover (as described above) is higher than 50%.
- Taxable persons having tax domicile, registered office or place of business in Bergamo, Brescia, Cremona, Lodi and Piacenza provinces can benefit from the abovementioned suspension, irrespectively from their turnover, provided that they have had a reduction of their turnover for an amount higher than 33% during March or April 2020 if compared to the same months of 2019.
- Finally, the mentioned benefit can apply also to taxable persons having tax domicile, registered office or place of business in Italy which have started their business, art or professional activity after March 31, 2019, without any particular limitation.
Payment of the stamp duty on electronic invoicesPayment of stamp duty due on electronic invoices can be done, without interests and penalties:
- For the first quarter, within the deadline provided for the payment of the stamp duty of the second quarter (July 20, 2020), if the amount due for the first quarter of the year is less than 250 euro;
- For the first and second quarters, within the deadline provided for the payment of the stamp duty of the third quarter (October 20, 2020), if the total amount due for the first and second quarter is less than 250 euro.
Free supplies of medicines and drugs used for compassionate use
Free supplies of pharmaceutical goods used for compassionate purposes are out of scope of VAT but entitling input VAT deduction.
Update 06/04/2020
Law Decree no.18/ 2020, so called "Cura Italia Law Decree", provides that, for taxpayers having their tax domicile, registered office or place of business in Italy, VAT filings (other than VAT payments) originally due during the period between 8 March 2020 and 31 May 2020 are kept on hold. VAT filings are due by 30 June 2020.
The Italian tax authorities, through the Circular letter issued on 3 April 2020, no. 8/E, have now clarified that the above measures do not apply to "foreign persons". Therefore, it appears that such measures should not apply to non-established businesses directly registered for VAT purposes in Italy as well as those who appointed an Italian fiscal representative.
Update 06/04/2020
Law Decree no.18/ 2020, so called "Cura Italia Law Decree", provides that, for taxpayers having their tax domicile, registered office or place of business in Italy, VAT filings (other than VAT payments) originally due during the period between 8 March 2020 and 31 May 2020 are kept on hold. VAT filings are due by 30 June 2020.
The Italian tax authorities, through the Circular letter issued on 3 April 2020, no. 8/E, have now clarified that the above measures do not apply to "foreign persons". Therefore, it appears that such measures should not apply to non-established businesses directly registered for VAT purposes in Italy as well as those who appointed an Italian fiscal representative.
Update 02/04/2020
2019 Italian annual VAT return deadline extended from 30th April to 30th June 2020.
Update 25/03/2020
Please see the below link for information on the latest guidelines in relation to Customs rules.
Italian Customs Authorities – Guidelines to manage COVID-19 emergency
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.
Update 18/03/2020
Comments regarding the tax measures of the decree "Cura Italia" can be found using this link.
Update 17/03/2020
The deadline for February F24 tax payments has been extended from the 16th March to the 20th of March 2020. This is included in the draft decree and expected to be published.
Update 15/03/2020
The Italian Ministry of Finance has communicated that all the tax payments (among them VAT) due by March 16, 2020 will be postponed.
The details of the above together with other tax measures will be included in a law decree which should be issued shortly.
For more information please contact alessia.zanatto@pwc.com
Latvia (Last updated: 27/03/2020)
- Any VAT overpay approved by the SRS appearing on a VAT return filed after 31 March 2020 will be refunded within 30 days after the filing deadline (or after the filing date if filed late or adjusted).
- Any VAT overpay approved by 31 March 2020 but carried forward to the next tax period until the end of the tax year (including any amount overpaid by a deregistered taxable person) will be refunded to the taxpayer by 14 April 2020.
- Any VAT overpay appearing on VAT returns filed by 31 March 2020 but not yet approved will be checked, approved and refunded by the SRS within 30 days after the VAT return was filed.
- If the deadline for approving any VAT overpaid by 31 March 2020 has been extended, the SRS will refund the overpay by the next working day after it is approved.
As before, all taxes and duties administered by the SRS as well as other national and related charges must be paid in accordance with the Taxes and Duties Act before the approved VAT overpay can be refunded. And the existing procedure under which the SRS may adjust the VAT overpay following a tax audit remains unchanged.
Excise
Given the increased demand for disinfectants and the shortage of denatured alcohol, disinfectants can be made from non-denatured alcohol, which will be exempt from excise. A disinfectant manufacturer must obtain an SRS permit for the purchase of alcoholic drinks.
To boost the production of disinfectants without substantially raising the required excise security, alcohol manufacturers holding an approved warehousekeeper licence are eligible for an up to 90% reduction in general excise security from the SRS. Alcohol manufacturers must notify the SRS one working day before starting alcohol production.
A disinfectant manufacturer who as temporarily registered consignee imports or receives alcohol from another member state based on an SRS permit for the purchase of alcoholic drinks may submit excise security with a 100% reduction.
To minimise interpersonal contact during the outbreak of COVID-19, sales of excise goods will be allowed under distance agreements subject to a ban on tobacco products and e-liquids, and it is illegal to sell alcoholic drinks to persons aged under 18 and between 10 p.m. and 8 a.m.
Lithuania (Last updated: 01/04/2020)
Update 01/04/2020
Input VAT incurred on goods with a short expiration date which could no longer be used in business due to COVID-19 restrictions can remain unadjusted. VAT registered persons that were included in the Tax Authority's list of businesses impacted by COVID-19 are allowed not to notify the Tax Authority about the losses. The relief mostly applies to shopping centers, retailers not selling foodstuff, restaurant businesses, cinemas, etc. Other businesses should follow general rules regarding inventory lost due COVID-19 and await a decision of the Tax Authority to allow not to adjust VAT deduction.
Update 30/03/2020
The Lithuanian Government abolished value thresholds applicable to goods provided as charity, if the goods are provided for the purpose of managing and prevention of COVID-19 situation. This means that giving-away goods as charity in support for COVID-19 will not be regarded as private use for VAT purposes. The amendment has retroactive effect from 26 February 2020.
Update 26/03/2020
There are no measures specifically for ITX in effect.
However, based on the draft legislation of 24 March 2020, the Government intends to abolish value thresholds applicable to goods provided as charity, if the goods are provided for the purpose of managing and prevention of COVID-19 situation. This means that giving-away goods as charity in support for COVID-19 will not be regarded as private use for VAT purposes. This amendment was submitted by the Ministry of Finance and is highly likely to be adopted. Suggested date of coming into force is 26 February 2020.
Also, pending discussions at the Parliament, a draft law suggesting 9% VAT rate (currently 21%) on catering services (except for alcohol beverages) has been submitted on 25 March 2020.
Update 16/03/2020
Tax payment deferral or tax loan agreement possibility
Based on existing rules, tax payers experiencing temporary financial difficulties may ask the Tax Authority to delay the payment or to have the payment in scheduled installments.
Currently, a possibility to apply this measure to personal income tax is discussed (regular deadline 16 March). For concluding tax loan agreements, the Tax Authority's procedure is fully digital.
Relief from filing a tax return
Tax payers that temporarily do not perform business (do not conclude or perform any transactions, payments, receive no income except for the interest on funds held in bank accounts) may be relieved from filing tax returns or other documents.
Advance corporate income tax return and payment deadline postponed.
Advance CIT return and payment deadline postponed until 30 March 2020 (regular deadline 16 March 2020).
There is a possibility to opt for a different advance CIT payment calculation method - not based on the last year's results but on the envisaged results.
For further information, please contact ausra.miltenyte@pwc.com
Luxembourg (Last updated: 12/05/2020)
Update 12/05/2020
The Luxembourg VAT authorities have communicated that in view of the gradual deconfinement of the national economy, the administrative tolerance in matters of VAT return and Subscription Tax is revoked. VAT returns that have not been submitted due to the health crisis are to be submitted promptly. However, forced collection of tax debts remains disabled for the time being
Update 17/04/2020
Extended Intrastat filing deadlines February - May 2020
For the purpose of collecting statistical data, businesses must declare intra-Community exchanges in the Intrastat system on a monthly basis; Operators are exempted if the annual amount of their intra-Community exchanges does not exceed EUR 200,000 for arrivals and EUR 150,000 for dispatches. In Luxembourg, businesses must declare their intra-Community exchanges on a monthly basis to the "Institut national de la statistique et des études économiques" (STATEC) at the latest on the 16th working day of the month following the month of reference if the report is submitted electronically.
In the Covid-19 context, the STATEC have announced tolerance measures relating to Intrastat declarations for the following months:
- Intrastat return for February 2020 >>> deadline is postponed to April 24, 2020
- Intrastat return for March 2020 >>> deadline is postponed to May 15, 2020
- Intrastat return for April 2020 >>> deadline is postponed to June 8, 2020
- Intrastat return for May 2020 >>> deadline is postponed to June 30, 2020
Update 08/04/2020
The Luxembourg VAT authorities released a communication yesterday informing that they would authorise upon request a postponement of the payment of the VAT debts existing before the start of the crisis. The request will be accepted to the extent that the requestor has financial difficulties due to the Covid-19 and/or requested to benefit from the subsidies/specific measures put in place by the government.
Note that this new measure applies in addition to the previous one which indicated that the Luxembourg VAT authorities would not apply any penalties for late filing of the VAT returns that are due since the start of the crisis.
Update 19/03/2020
No administrative fines will be decided for late filing of VAT returns until further notice.
Update 18/03/2020
The first indirect tax measure announced by the Luxembourg Ministry of Finance is all VAT receivable balances under 10,000 EUR will be refunded in order to help to cope with first possible liquidity issues.
Update 16/03/2020
No measures are currently in place.
For further information please contact frederic.wersand@pwc.com
Malta (Last updated: 02/06/2020)
Update 02/06/2020
VAT payments due in May and June have also been deferred. In a new notice issued by the Commissioner for Revenue, such amounts are now to be settled by end of October 2020 (previously the notice was that these must be settled in two equal instalments with the two quarterly returns immediately following the quarter whose dues would have been deferred).
Update 23/03/2020
VAT payments due in March and April 2020 are to be deferred and are to be settled in two equal instalments with the two quarterly returns immediately following the quarter whose dues would have been deferred. Specifically excluded are companies and self-employed persons which have failed to comply with their tax obligations (submission of documents / returns and payments) falling due by the 31st December 2019.
Update 19/03/2020
Please see this newsletter in relation to the upcoming VAT return deadlines.
For more information please contact david.ferry@pwc.com
Netherlands (Last updated: 21/04/2021)
Update 21/04/2021
The European Commission decided to extend the temporary relief for customs duties and VAT on the import of medical devices until 31 December 2021. The duty and VAT free importation applies to:
- State organisations (State bodies, public bodies and other bodies governed by public law including hospitals, governmental organisations, communes/towns, regional governments, etc).
- charitable or philanthropic organisations approved by the competent authorities of the Member States.
The Dutch government subsequently updated its legislation to extend the scope of application, and confirmed that the zero rate also applies to services consisting of administering and / or performing tests with test kits. These must be COVID-19 test kits that are included in the European Commission's 'COVID-19 In-Vitro Diagnostic Devices and Test Methods Database' at the time of supply, and be CE marked. The government is also allowing the zero rate to be applied to antigen self-tests for which the Minister for Medical Care and Sport has granted an exemption from marketing them on the Dutch market.
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 14/05/2020
The State Secretary reported to the House of Representatives that the Government has decided to apply the zero rate to domestic sales of mouth masks from 25 May 2020 to 1 September 2020. The purpose of this measure is to make face masks cheaper for consumers who travel by public transport. Application of the zero rate also means that the seller retains his right to deduct input tax. The further interpretation of the zero rate for mouth masks is currently being further elaborated in regulations. The zero rate will be applied to (non-medical) masks that consumers are allowed to use in public transport, as well as to medical masks, regardless of who they are sold to.
Update 13/05/2020
The Ministry of Finance has announced that as of the 25 May up to 1 September 2020 (at the earliest) no VAT is due on the supply of mouth masks irrespective of their use is medical or not.
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://www.pwc.nl/en/insights-and-publications/tax-news/vat/practical-issues-rex-statements.html
Update 07/04/2020
The latest update on the Dutch customs measures can be found here
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 as well.
https://www.pwc.nl/en/insights-and-publications/tax-news/vat/new-exporter-definition-further-postponed.html
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
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 18/03/2020
The Dutch tax authorities have opened the possibility for an extension of the payment deadline for various taxes including VAT. This was further simplified as part of an emergency measures package on 17 March 2020 (view this webpage for full details: https://www.rijksoverheid.nl/onderwerpen/coronavirus-covid-19/nieuws/2020/03/17/coronavirus-kabinet-neemt-pakket-nieuwe-maatregelen-voor-banen-en-economie).
The request needs to be submitted in writing and should contain an explanation why the covid-19 virus has impacted your company as well as a declaration from a third party to ascertain the viability of your company. This declaration can now be provided within four weeks from filing the request and further details on what the declaration should contain will follow within soon. Late payment interest for VAT is reduced temporarily from 4% to 0.01% from 1 June 2020, whereas collection interest is also reduced from 4% to 0.01% per 23 March 2020. Finally, penalties for not timely paying VAT due will be waived. Further details can be found here: https://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/berichten/nieuws/uitstel-betaling-gevolgen-coronavirus
Please see below more measures in addition to the ones posted on 17/03/2020:
Foreign VAT reclaims
The deadline for reclaiming VAT for the year 2019 from other EU territories is by 30 September 2020. When amounts are significant enough, it may be considered to bring 2020 claims forward already now since the de minimis thresholds for EU VAT reclaims are EUR 400 / 3 month-period for a claim and EUR 50 on an annual basis.
Update 17/03/2020
The Dutch tax authorities have opened the possibility for an extension of the payment deadline for all taxes including VAT. The request needs to be submitted in writing and should contain an explanation why the covid-19 virus has impacted your company as well as a declaration from a third party to ascertain the viability of your company. Further details can be found here: https://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/berichten/nieuws/uitstel-betaling-gevolgen-coronavirus
Below you can find a couple of measures you can take to better manage the impact of VAT on your net working capital position.
VAT and bad debts
In these challenging times, your customers may be facing bankruptcy and/or payment difficulties. Since 1 January 2017, Dutch VAT law prescribes that all receivables outstanding for more than one year from the moment they fell due (i.e. after the payment due date), are automatically treated as bad debts and VAT charged on transactions performed to these customers can be reclaimed via the regular VAT return. We recommend to check your outstanding receivables bearing in mind this criterion to optimise your VAT recovery position.
Cancellation fees and VAT
In case of a cancellation, non-fulfillment of contractual obligations, no-shows and comparable situations, it is worth noting that any VAT charged may not be due anymore / open for VAT recovery. VAT should not become an expense for your company in a situation caused by COVID-19 if:
- you are no longer able to use the goods or services you have purchased or manufactured;
- an advance payment or deposit has been received but the transaction will no longer be carried out;
- there is an obligation to pay for damage or loss.
We are happy to support investigating any potential VAT refund reclaims referring to the aforementioned situations.
Offsetting VAT receivable and wage tax payable
It is possible to offset VAT receivable with wage tax payable upon request with the Dutch tax authorities. This enables you to bring the moment of the VAT receivable forward instead of waiting for the VAT to be paid out by the Dutch tax authorities following the filing of the VAT return.
VAT return filing period
The VAT return filing period is quarterly by default in the Netherlands. In case you are currently filing VAT returns on a monthly basis, it is possible to switch to quarterly VAT returns upon request in order to better manage cash-flow for VAT payable or from quarterly to monthly in case you are in a VAT receivable position.
Timing of invoices
When invoices are issued at the beginning of the month, based on the payment terms agreed with customers, the payment (including VAT) will often have been received before the filing due date of the VAT return. This means that you don’t have to pre-finance output VAT. On the other hand, invoices from suppliers are preferably issued at the end of the month, so that you can reclaim the VAT already, before the payment deadline towards the customers, meaning that you bring forward your input VAT position.
VAT grouping
Under circumstances it is possible to form a VAT group between companies which meet the required economic, financial and organisational links. This enables the companies to file one combined VAT return and charges between entities in the VAT group are outside the scope of VAT, i.e. not impact cash-flow. Furthermore, it is not required to issue invoices for transactions within the VAT group. Downside is joint and several liability for VAT debts among entities included in a VAT group.
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.
Update 12/03/2020
Guidance from the local tax authority. Dedicated page from PWC Netherlands to be shared when ready (in Dutch only for now)
For more information please contact manon.ultee@pwc.com.
Poland (Last updated: 18/05/2020)
Update 18/05/2020
In response to the COVID-19 pandemic, the government has announced that until 30 June 2020, the supply of disinfectants with bactericidal, fungicidal or virucidal properties in the field of health care, will be subject to the reduced 8% VAT rate. In addition, in the period until the end of the epidemic status in Poland, the 0% VAT rate is applicable to the supply of medicinal products subject to import or intra-Community acquisition in Poland, provided the purchase is financed from public collections, organized by public benefit organizations. There is also the possibility to use the 0% VAT rate for supplies related to fighting COVID-19, provided that the transaction is a free of charge supply of pharmaceuticals, diagnostics tests, personal protective equipment, etc, and such donation is made to hospitals or governmental agencies gathering strategic supplies (this is a temporary measure valid from 1 February to 31 August 2020).
The 0% VAT rate is applicable to the supply of medicinal products subject to the following conditions:
- the products are subject to import or intra-Community acquisition in Poland;
- the purchase of the products is financed from public collections, organized by public benefit organizations;
- the products are used to carry out therapy, which carrying out outside Poland has become impossible or excessively difficult due to restrictions imposed as a result of the epidemic status;
- the seller has the buyer's confirmation that the funds come from the public collection and that the goods will be used for therapy carried out in Poland.
There is also the possibility to use the 0% VAT rate for supplies related to fighting COVID-19, provided:
- the transaction is a free of charge supply of pharmaceuticals, diagnostics tests, personal protective equipment, etc, and such donation is made to hospitals or governmental agencies gathering strategic supplies;
- there is a written agreement in place between the benefactor and beneficiary (hospital or governmental agency) confirming that the given goods will be used for the purposes of fighting COVID-19.
Update 04/05/2020
INTRASTAT statistical declarations for the month of April 2020 can be submitted by the 20th of May 2020. Submission of INTRASTAT statistical declaration for April 2020 after the 10th of May will not have any negative consequences for persons obliged to submit the declarations.
Update 03/04/2020
INTRASTAT statistical declarations for the month of March 2020 can be submitted by the 20th of April 2020. Submission of INTRASTAT statistical declaration for March 2020 after the 10th of April will have not any negative consequences for persons obliged to submit the declarations.
1. Rates:
- Products manufactured or purchased by the companies for the fight against the coronavirus are subject to a "zero" VAT rate;
- The new matrix of VAT rates will become effective from July 1, 2020.
2. Payment /time limits:
- Taxpayers may apply for tax debt write-off or delay of payment deadline;
- The tax payment date extension fee shall not be charged during epidemic state.
3. Filing of returns /frequency - no amendments.
4. Other:
- Possibility of providing the customer with a fiscal receipt in electronic form (with the consent and in the manner agreed with the customer);
- Extension of the deadline (from 3 to 14 days) for submission of notification of payment to an account not included in the list of VAT taxpayers (so-called “white list”);
- Possibility to refrain from imposing penalties for errors in SAF-T file;
- Extension of deadline for implementation of new VAT standard audit file for taxes (JPK_VDEK / SAF_T VDEK) to 1 July 2020 (The deadline for implementation of SAF_T VDEK shall be delayed. Originally this new schema of standard audit file for taxes was meant to be applicable to large enterprises starting 1 April 2020);
- Possibility to suspend on-going tax proceedings, including tax audits;
- There will be options to suspend administrative enforcement proceedings for cash receivables.
Update 23/03/2020
Payment /time limits
-Taxpayers may apply for tax debt write-off or delay of payment deadline.
- The tax payment date extension fee shall not be charged during epidemic state.
3. Filing of returns /frequency - no amendments.
4. Other:
-Extension of deadline for implementation of new VAT standard audit file for taxes (JPK_VDEK / SAF_T VDEK) to 1 July 2020 (originally this new schema of standard audit file for taxes was meant to be applicable to large enterprises starting 1 April 2020).
-Possibility to suspend on-going tax proceedings, including tax audits.
-There will be options to suspend administrative enforcement proceedings for cash receivables.
Update 12/03/2020
The extension of SAF-T is delayed to 1 July (Legislation has not been published yet but has been announced by Ministry of Finance officials). No further update from the local tax authority as yet.
For more information please contact tomasz.kassel@pwc.com
Portugal (Last updated: 30/07/2021)
Update 30/07/2021
Order no. 260/2021-XXII, of 27 July, of the State Secretary for Tax Affairs, has been published postponing the deadlines for submission of VAT returns for the months of July, August, September and October 2021, which can now be filed by the 20th of September, October, November and December 2021 respectively. For taxpayers on the quarterly regime, 3rd quarter returns for 2021 can be submitted until 20 November 2021. VAT payable on any of these returns may be paid by the 25th of the respective month.
Order no. 260/2021-XXII, of 27 July, of the State Secretary for Tax Affairs, extends the admissibility of invoices in PDF format as electronic invoices until 31 December 2021. The facilitation measure had previously been extended to 30 September 2021.
Update 15/07/2021
Order 232/2021-XXII, of July 8th, 2021, of the State Secretary for Tax Affairs, allows for the possibility of deferring payment of VAT due in respect of the June and second quarter 2021 VAT returns until 6 September 2021, without penalties or interest. Please note that the deadline for submission of these declarations remains unchanged at 31 August 2021.
Update 10/06/2021
Regulatory Decree 2-A/2021, of 28 May, published in the Official Gazette, establishes the scope and conditions applicable to 'IVAucher', a stimulus programme introduced by the 2021 State Budget Law aimed at supporting and stimulating the cultural, restaurant and accommodation sectors in response to the pandemic crisis. In summary, taxpayers will be able to deduct the amount of VAT included in expenses incurred in the aforementioned business sectors against other (new) expenses incurred in the same sectors.
Update 10/06/2021
Regional Decree 15-A/2021/A, of 31 May, published in the Official Gazette, approves the 2021 Budget of the Autonomous Region of the Azores, and includes a 30% reduction in the VAT rates in force in the Portuguese mainland. Therefore, the applicable rates, which take effect from 1 July 2021, are set at 16% (standard rate), 9% (intermediate rate) and 4% (reduced rate).
Update 28/05/2021
Law 33/2021, of 28 May, published in the Official Gazette, extends to 31 December 2021 the VAT exemption on intra-Community transfers and acquisitions of goods necessary to combat the COVID-19 outbreak. The exemption was originally introduced with effect from 30 January 2020 and applies to acquisitions made by the State and other public bodies or non-profit organizations.
Update 26/05/2021
The entry into force of the 'Plastic Tax' has been officially postponed to 1 January 2022 by Decree-Law 'Sostegni bis' published in the Official Gazette no. 123 of 25 May 2021. As previously reported, the 2020 budget law (n. 160/2019) introduced a tax on single-use plastic items which have the function of containing, protecting, handling or delivering goods, and was originally due to take effect from 1 July 2020, but deferred, first to January 2021, then to July 2021 due to the pandemic situation, and finally now to 1 January 2022.
Update 28/04/2021
Tax Circular 30234 of 23 April 2021, follows the publication of Order 133/2021-XXII of the State Secretary of Tax Affairs of 22 April 2021, and provides guidelines concerning the deadlines for filing of VAT returns and payment of VAT for the April - June 2021 period. Under the new timetable, monthly VAT returns for April 2021 can be filed up to 21 June, with payment of the associated VAT due by 25 June. Filing and payment of the April - June 2021 quarterly VAT return can be made up to 31 August 2021.
Update 08/03/2021
Decree 50/2021, of 5 March, approves a new form (Form 56) and respective filing instructions for the assessment of the extraordinary levy applicable to suppliers of medical devices, including for in-vitro diagnosis, to the national health system. This follows the amendments introduced by the 2021 State Budget Law and applies from 2021 onward. The previous version of Form 56, as approved by Decree 283/2020, of 10 December, shall be used to assess the 2020 levy (until it ceases to apply).
Update 02/12/2020
Following the recent Budget announcement, Order No. 450/2020-XXII of 27 November, extends until 30 April 2021 the VAT exemption on the acquisition of goods necessary to combat COVID-19, provided for in Article 2 of Law No. 13/2020, of May 7. The exemption was originally intended to be in place until 31 October 2020.
Update 25/11/2020
Decree Law no. 99/2020, of 22 November, approves an extraordinary regime postponing the deadlines to comply with tax and social security obligations arising in November and December of 2020. Under the new rules, prescribed micro, small, and medium-sized enterprises under the quarterly VAT regime, can make payment of their November VAT in 3 or 6 monthly instalments of €25 or more; the first instalment should be paid within the legal deadline foreseen, followed by subsequent installments within the stipulated timeline for payments.
Update 19/11/2020
Order 437/2020-XXII of the State Secretary of Tax Affairs, of 9 November 2020, adjusts the 2020 and 2021 calendar of tax obligations free of any penalties. There are adjustments to the deadlines for filing VAT returns as well as for paying any VAT due.
Update 30/10/2020
As part of a 'Budget for Uncertainty and Recovery' the VAT exemption for goods necessary to tackle the effects of the COVID-19 outbreak has been extended until 30 April 2021. The exemption, applicable to acquisitions made by the State and other public bodies or non-profit organizations, was due to expire on 31 October 2020, and has also been extended to certain supplies made to scientific and higher education institutions. In addition, the current reduced rate of VAT for imports and intra-Community supplies and acquisitions of masks for respiratory protection and skin disinfectant gel, has now been included in the VAT code, having been due to expire on 31st December 2020.
Update 24/08/2020
Following other measures enacted regarding the flexibilisation of tax obligations, Order no. 330/2020-XXII, of 13 August, of the State Secretary of Tax Affairs, establishes that July VAT return can be filed up to 20 September 2020 (10 September, as a general rule), free from any penalties or increases in the respective amount. The VAT due can be paid until 25 September.
Update 18/08/2020
Extension of the VAT exemption on goods necessary to combat the Covid-19 outbreak
https://www.pwc.pt/en/pwcinforfisco/flash/iva-e-impostos-indiretos/pwc-tax-flash-vat-extension-of-the-vat-exemption-on-goods-necessary-to-combat-the-covid-19-outbreak.html
Update 17/08/2020
DAC 6 – Filing of information on reportable domestic and cross-border arrangements: postponement of deadlines
https://www.pwc.pt/en/pwcinforfisco/flash/other/pwc-tax-flash-dac-6-filing-of-information-on-reportable-domestic-and-cross-border-arrangements-postponement-of-deadlines.html
Update 04/08/2020
Law 29/2020, of 31 July, published in the Official Gazette, establishes COVID-19 pandemic related tax measures to support cooperatives as well as micro, small and medium sized companies (SMEs). Under the new rules, refunds of withholding taxes, payments on account or VAT in excess of the amounts due, will be made within 15 days of the taxpayer filing the respective return. The new law is effective from 1 August 2020, and applies until the end of the year in which the extraordinary and temporary COVID-19 pandemic measures cease to apply.
Please see this newsletter - link - for further details.
Update 03/08/2020
Law 29/2020, of 31 July, published in the Official Gazette, establishes COVID-19 pandemic related tax measures to support cooperatives as well as micro, small and medium sized companies (SME), as per the definition in article 2 of the annex to Decree-Law 372/2007, of 6 November.
The refund of withholding taxes, payments on account or VAT in excess of the amounts due is made within 15 days following the fling of the respective return by the taxpayer.
This Law enters into force on 1 August 2020. It applies until the end of the year in which the extraordinary and temporary COVID-19 pandemic measures cease to apply.
Update 21/7/2020
Order no. 259/2020.XXII of the Secretary of State for Tax Affairs, dated as of July 16th, 2020, has extended the deadline for submission of the 2019 annual return (IES/DA) to 15 September 2020.
Additionally, it was established that the submission of the IES/DA and the SAF-T files under the terms foreseen in the Ministerial Order no. 31/2019, of 24 January, is only applicable to the IES/DA for FY 2020 onwards.
Please see this newsletter - link - for further details.
Law 26/2020, of 21 July, published in the Official Gazette, transposes Council Directive (EU) 2018/822, of 25 May 2018. It determines the obligation to report to the tax authorities certain internal and cross border tax arrangements.
https://www.pwc.pt/en/pwcinforfisco/flash/other/pwc-tax-flash-reportable-cross-border-arrangements-council-directive-eu-2018-822-dac6.html
Update 20/07/2020
An Order of the State Secretary of Tax Affairs extends to the 31st August 2020 the deadline to complete the first PIT payment on account regarding the current year.
https://www.pwc.pt/en/pwcinforfisco/flash/pit-and-social-security/pwc-tax-flash-pit-postponement-of-deadline-of-the-first-payment-on-account.html
Update 09/06/2020
VAT – Refund to event organizers operating in the tourism sector
https://www.pwc.pt/en/pwcinforfisco/flash/other/tax-flash-covid-19-economic-and-social-stabilization-program-main-tax-measures.html
Update 11/05/2020
COVID-19 – VAT – Disinfectant gel – Reduced VAT rate https://www.pwc.pt/en/pwcinforfisco/flash/other/pwc-tax-flash-covid-19-vat-disinfectant-gel-reduced-vat-rate.html
Update 07/05/2020
Law no. 13/2020, of 7 May, published in the Official Gazette, establishes the following temporary measures
- Exemption from VAT on intraCommunity supply and acquisitions of goods (listed in the annex to the referred Law) necessary to tackle the effects of the COVID-19 outbreak; it applies to acquisitions made by the State and other public bodies or non-profit organizations; this measure applies from the 30th January to the 31st July 2020;
- Application of the reduced VAT rate to imports, as well as intraCommunity supplies and acquisitions of masks for respiratory protection and skin disinfectant gel; the reduced rate applies from the 8th May to the 31st December 2020.
https://www.pwc.pt/en/pwcinforfisco/flash/iva-e-impostos-indiretos/pwc-tax-flash-covid-19-vat-exemption-and-reduced-vat-rate-applicable-to-certain-goods.html
Update 29/04/2020
Order 153/2020-XXII, of 24 April, of the State Secretary of Tax Affairs, extends the deadlines to comply with several tax obligations, as well as the deadlines for the payment of taxes.
https://www.pwc.pt/en/pwcinforfisco/flash/other/pwc-tax-flash-covid-19-extension-of-deadlines-to-file-tax-statements-and-pay-taxes.html
Update 09/04/2020
Order no. 129/2020-XXII, of March 27, issued by the Secretary of State for Tax Affairs, establishes simplification procedures to adapt compliance reporting obligations to the current circumstances caused by the COVID-19 pandemic
Please see further information here: https://www.pwc.pt/en/pwcinforfisco/flash/iva-e-impostos-indiretos/pwc-tax-flash-vat-covid-19-simplification-measures-for-completion-of-vat-returns-pdf-invoices.html
Update 27/03/2020
VAT payments to be postponed. Further update to follow.
For more information please contact susana.claro@pwc.com
Romania (Last updated: 04/11/2020)
Update 04/11/2020
The Government has adopted a series of fiscal measures through Government Emergency Ordinance no. 181/2020 (GEO 181/2020) which entered into force on 26 October 2020. Until 25 December 2020, interest and penalties will not be considered outstanding and interest will not be levied on unpaid tax obligations with maturity on 21 March 2020. All enforcement measures are suspended or will not commence until that date. The legal deadline by which VAT returns with negative amounts and reimbursement options are settled with subsequent inspection, has been extended to 25 January 2021. Taxpayers obliged to pay specific tax for certain activities in 2020 are exempt from payment for the period 26 October - 31 December 2020.
Update 29/06/2020
Until 1 October 2020, the following operations with protective masks and medical fans are exempt from value added tax (VAT) with the right to deduct:
- deliveries made to public institutions responsible for setting up the rescEU reserve. The supplier justifies the VAT exemption through a declaration of own responsibility regarding the destination of the delivered goods, by the time of delivery;
- intra-Community imports and purchases by public institutions responsible for setting up the rescEU reserve. Exemption from VAT is justified on the basis of the beneficiary’s declaration of own responsibility, to be lodged with the customs authorities at the time of importation.
https://www.pwc.ro/en/tax-legal/alerts/government-emergency-ordinance-no--99-2020-on-some-fiscal-measur.html
Update 20/05/2020
Please see the latest measures in relation to VAT here
Update 27/04/2020
Government Emergency Ordinance (GEO) no. 48/2020 completes a series of legislative measures adopted as a result of the establishment of the state of emergency. As part of these latest changes, and subject to certain exceptions, requests for VAT refunds will be dealt with by way of a subsequent tax audit which will be decided based on a risk analysis. The new rules apply to VAT refund applications submitted during the state of emergency and for 30 days thereafter, including pending VAT refund claims for which the VAT refund decision has not been issued by the date of entry into force of the new Ordinance (16 April 2020).
In addition, the existing facility for import VAT deferment is granted also for imports of protective mask production machines, during the state of emergency period and the following 30 days, and for completely denatured ethyl alcohol used for the production of disinfectants, but only during the state of emergency period. For imports of completely denatured ethyl alcohol, only importers with an end-user authorisation according to the legal provisions, valid as at the date of import, benefit from the VAT deferment.
Please see this newsletter - link - for further details of these and the other measure introduced by Emergency Ordinance no. 48/2020.
Update 03/04/2020
No VAT applies imports of medical equipment and drugs for combatting COVID-19 during the state of emergency and for a further period of 30 days after the government lifts it.
https://www.pwc.ro/en/tax-legal/alerts/government-emergency-ordinance-no--33-2020-regarding-some-fiscal.html
Update 17/03/2020
Considering the economic context caused by the spread of the COVID – 19 virus, Romania’s National Agency for Fiscal Administration (ANAF) has prepared several measures aimed at supporting the business environment. Some of the steps to be taken are:
- Suspension or decision not to initiate enforced collection of budget claims; to achieve this, no orders for payment, garnishment over available funds and over revenues and property seizure will be issued. This will not include any amounts ordered under court judgements in criminal cases;
- VAT refunds during March for all processed returns / claims for which refund decisions have been issued;
- Implementation of a new VAT refund mechanism intended to speed up refund claim processing, starting 1 April 2020;
- Suspension of tax audit proceedings (tax inspections, anti-fraud checks), except for checks that can be performed remotely and except for tax evasion cases, where relevant indications are available;
- Suspension of the antifraud activities related to Filter 2 and of the specific activities at the Hungarian and Bulgarian border checkpoints.
These measures will apply throughout the duration of the state of emergency in Romania and for 30 days after the termination thereof.
The 25 March 2020 deadline for filing tax returns is postponed to 25 April 2020.
Update 13/03/2020
No measures have been undertaken yet, however, business associations have been requested to postpone the reporting calendar. No official feedback has been received yet from the Romanian tax authorities.
For more information please contact inge.abdulcair@pwc.com
Slovakia (Last updates: 09/06/2020)
Deadlines for VAT reporting and payments remain the same. Established and non-established businesses can get missed deadlines remitted provided the reasons why the deadlines could not be met are reasonably explained.
For more information please contact dmytro.x.myroshnychenko@pwc.com
Slovenia (Last updated: 30/03/2020)
Taxable persons may ask for a deferral of tax payment for up to 2 years or payment of tax in maximum of 24 monthly instalments by submitting a form in the e-Tax system or exceptionally by email. No interest shall be charged for the time of deferral/instalments.
For more information please contact mojca.bartol.lesar@pwc.com
Spain (Last updated: 18/11/2020)
Update 18/11/2020
As anticipated, following the expiry of the temporary COVID emergency zero rate of VAT for sanitary products on 31 October 2020, Royal Decree Law Nr 34/2020 of 17 November extends to 30 April 2021 the temporary zero VAT rate applicable to purchases, EU acquisitions and imports of sanitary in-scope products for combatting COVID-19 (included in an Annex to the law) by Public Entities, Hospitals, either public or private, and NPOs. Also as expected, the new Decree establishes a temporary 4% super-reduced VAT rate applicable to surgical disposable masks for the period up to 31 December 2021.
Update 13/11/2020
Following the expiry of the temporary COVID emergency zero rate of VAT for sanitary products on 31 October 2020, the Minister of Finance has announced plans to further extend the relief to 30 April 2021. The temporary zero rate applies to purchases, imports and EU acquisitions of masks and a number of other sanitary products by public entities, hospitals and NPOs for combatting COVID-19. The original derogation under which the zero rate was introduced expired on 31 July 2020, but was reinstated via a Royal Decree-Law until 31 October 2020. Implementing legislation for this latest extension, with retroactive effect to 31 October, is expected shortly.
In a further move, after denying such possibility due to technical reasons (namely EU Directive constraints), the Minister of Finance has finally announced the imminent approval of a super-reduced 4% VAT rate for face masks. It is expected that the legislative change will be made effective next week, therefore it appears that the EU Commission has endorsed the Spanish Government's plans.
Update 02/10/2020
The temporary zero rate of VAT introduced in April 2020 for purchases, imports and EU acquisitions of masks and a number of other sanitary products by public entities, hospitals and NPOs for combatting COVID-19, has been extended to 31 October 2020. The original derogation under which the zero rate was introduced expired on 31 July 2020, but has now been reinstated via a Royal Decree-Law with retrospective effect from the date the original derogation expired.
Update 26/05/2020
1) The "State of Alarm" is officially extended up to next 7 June 2020;
2) Administrative terms and deadlines affecting other than tax procedures (tax procedures were extended up to next 30 May) suspended under the validity of Royal Decree 463/2020 (See our 16/03/2020 Update) will be continued/restarted as from next 1 June 2020 by derogating RD 463/2020 in this particular regard as of such date;
3) All judicial terms and deadlines suspended under the validity of Royal Decree 463/2020 will be restarted as from 4 June 2020 by derogating RD 463/2020 in this particular regard as of such date;
4) Statute of limitations and deadlines for exercising whatever actions or rights (except those or which specific measures had been adopted, e.g. within the frame of a tax procedure such as appeals for reconsideration or economic-administrative claims) suspended under the validity of Royal Decree 463/2020 will be continued/restarted as from 4 June 2020 by derogating RD 463/2020 in this particular regard as of such date.
Update 23/04/2020
RDL 15/2020, in force as of 23 April 2020:
1) Temporary (up to next 31 July 2020) zero VAT rate applicable to sanitary products in connection with the intra-EU acquisition, importation and domestic supply of sanitary products used to fight COVID-19 to Public Entities, Hospitals, Clinics and NPOs that complements the previous exemption already applicable to customs duties and import VAT upon the importation of said good for the purpose of donation to Public Entities and NPOs.
2) Super-reduced 4% VAT rate applicable to e-books, newspapers and magazines supplied electronically.
3) New extension of the deadlines initially extended up to 30 April and 20 May 2020. All references to these extended deadlines made in the RDL 8/2020 of 17 March and RDL 11/2012 of 31 March will now be understood as extended until next 30 May (please, see our 18 March update for prior 30 April and 20 May deadlines now extended up to next 30 May).
Furthermore, RDL 11/2020 published on 1 April, has introduced the possibility to apply for the deferral of tax debts resulting from Customs Import Declarations submitted up to next 30 May, exceeding 100 Eur. but not exceeding 30,000 Eur. and only for SMEs not exceeding 6 Mio Eur turnover during 2019. The deferral will be applied for in the same Customs Declaration and will be granted and notified by the Authorities in accordance with EU customs proceedings applicable to the notification of the customs liability.
Such deferral will not be applicable to the VAT element in those cases where taxpayers are already declaring import VAT through their monthly VAT returns (import VAT deferral scheme).
Deferrals will be granted for 6 months as from the end of the term for customs duties and import VAT payment. No delay interest will be accrued during the first 3 months.
The guarantee submitted for the removal of the goods will be valid for the purpose of the above mentioned deferral.
Update 22/04/2020
VAT rate on e-publications in Spain is to be reduced to 4%. Further information to follow shortly.
Update 16/04/2020
Spanish Government has approved Royal Decree Law 14/2020, of 14 April 2020, which establishes an automatic extension of deadlines in case of SMEs (whose turnover volume has not exceeded 600,000 € in 2019) for the filing and payment of all tax returns (including VAT returns) with a deadline between 15 April and 20 May. Deadlines in case of all these tax returns will be extended up to next 20 May 2020.
Entities applying grouping schemes for CIT or VAT grouping will NOT be able to benefit from this measure irrespective of their turnover volumes.
In case of tax returns to be paid by taxpayers through direct debit the above mentioned deadlines as from 15 April will be extended up to 15 May only (not 20 May since direct debit obliges the tax Authorities to previously run verification on taxpayers' bank accounts).
This measure will not affect Customs Declarations ether.
Update 31/03/2020
Last 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.
Update 24/03/2020
The Canary Island Tax Authorities published an Order on 23 March 2020 whereby submission deadlines for 1Q IGIC return (initially due by 20 April) are extended until next 1 June 2020 for SMEs and self-employed workers whose turnover has not exceeded 6 mio Eur in 2019.
Update 19/03/2020
On 18 March 2020, the Spanish Government published Royal Law-Decree 8/2020 with extraordinary and urgent measures for tackling the economic and social impact derived from COVID-19.
TAX MEASURES: Replaces those contained in the previous RD 463/2020 of 14 March as far as TAX PROCEDURES are concerned.
1) The following terms and deadline which had already started BEFORE 18 March are automatically extended until next 30 April 2020:
- Terms and deadlines in connection with outstanding payments related to tax debts settled by the Spanish Tax Authorities that are either in the voluntary or compulsory collection periods. Note: As already noted in previous updates, this measure does not affect tax debts resulting from tax declarations and returns self-settled by taxpayers, e.g. resulting from monthly/quarterly VAT return filings, i.e. February VAT return still to be submitted and paid by 30 March 2021. For automatic tax deferral available for SMEs and professionals please refer to the earlier update.
- Terms and deadlines in connection with tax debts already postponed.
- Terms and deadlines for attending tax info requests received from the STA.
- Terms and deadlines for submitting allegations within the frame of tax management, tax penalty, refund of unduly paid taxes and other procedures.
- All the above-mentioned terms and deadlines which started from 18 March 2020 are automatically extended until 20 May 2020.
2) DEADLINES FOR APPEALS
Deadlines for: i) Appeal for Reconsideration previous to the economic-administrative claim; ii) Economic-Administrative Claim either before Regional Courts or Central Court started before 16 March 2020 are not suspended.
Deadlines for: i) Appeal for Reconsideration previous to the economic-administrative claim; ii) Economic-Administrative Claim either before Regional Courts or Central Court, started after 18 March 2020 will not be deemed initiated until 30 April 2021.
Deadline for filing allegations within the frame of the Economic-Administrative procedure started before 18 March 2020 is not extended.
Deadline for filing allegations within the frame of the Economic-Administrative procedure started after 18 March 2020 is extended until 20 May 2021.
3) STATUTE OF LIMITATIONS AND EXPIRY TERMS
The period between 18 March and 30 April is not computed for the purpose of the maximum duration of tax management, tax penalty and tax appeal procedures according to the law.
In general terms, the period between 18 March and 30 April is NOT computed for the purpose of the Statute of Limitations and expiry terms, e.g. the 4 years term in order to exercise the right to deduct input VAT quotas.
4) CUSTOMS PROCEDURES
The above-mentioned rules will not affect deadlines governed by customs law provisions.
Besides, aimed at guaranteeing the continuity of customs traffic, the Customs and Excise Duties Department at the State Tax Agency will be able to decide that any administrative body or any officer in charge of Customs and Excise is allowed to execute both the customs declaration procedure and dispatch of goods.
Update in connection with the measures implemented by the Spanish Customs Authorities regarding COVID-19:
Today, 17 March 2020, the Customs and Excise Duties Department of the Spanish Tax Authorities published an Informative Note whereby it publishes 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" which initial duration is 15 calendar days.
Briefly explained, the main purpose of the note is informing that most of the activities conducted by the Department will be performed remotely, being the only services to be physically rendered by the Customs Authorities those related with the clearance of the goods for the import/export and related with travellers.
Additionally, special rules will apply in relation to guarantees (original documents will not be requested and scanned copies will be accepted, irrespective of the potential request to be conducted at any future point); Certificates of origin EUR-1 (its subsequent issuance will be accepted during this timeframe); ATA carnet (a scanned copy will be accepted by the Customs Authorities) and transit sealed procedure (a precise description of the goods could replace the seal of the goods).
Update 16/03/2020
The STA have published the following statement on its website:
"IMPORTANT NOTICE: EXTENSION OF DEADLINES IN TAX PROCEDURES
Deadlines in tax procedures will be extended by means of an imminent legislative change. All visits can be postponed. The tax agency will contact the business to rearrange visits.
It is not clear at this point whether this will affect all tax procedures.
Up to now, only Spanish version of the above mentioned text available in the STA's webpage.
AUTOMATIC TAX DEFERRALS
Provisional instructions to be followed in order to apply for a tax deferral in accordance with the Royal Law-Decree 7/2020, of 12 March, just for SMEs and professionals are now available on the STA's webpage.
A deferral for tax payment will be automatically granted to all those tax returns (including VAT returns) with a deadline between 13 March 2020 and 30 May 2020, both inclusive, for tax debts up to 30.000 EUR.
As a mandatory requirement tax debtors cannot exceed 6 Mio turnover during the precedent year, i.e. 2019.
Deferrals will be subject to the following conditions:
- Term for deferral will be 6 months (e.g. February VAT return to be filed by next 30 March 2020 will be deferred until next 30 September 2020)
- No delay interest will be due for the first three months
Up to now, only Spanish version of instructions available on how to apply for a deferral.
On 14 March 2020, The Spanish Government published its RD 463/2020 whereby it officially declares the "State of Alarm" for managing the sanitary crisis in all the territory of the country. Initial duration of 15 calendar days (can be extended if necessary).
In terms of Indirect Tax measures this means the following:
1) AUTOMATIC SUSPENSION OF ALL JUDICIAL TERMS AND DEADLINES
Terms and deadlines in connection with all Judicial Procedures substantiated before Spanish Courts for all jurisdictions (including the contentious-administrative courts in charge of all tax matters) are automatically SUSPENDED/INTERRUPTED as from 14 March 2020. Terms and deadlines will be restarted as soon as the State of Alarm is declared ended.
2) AUTOMATIC SUSPENSION OF ALL ADMINISTRATIVE TERMS AND DEADLINES
Terms and deadlines in connection with all Administrative Procedures (including all tax procedures) are automatically SUSPENDED/INTERRUPTED as from 14 March 2020. Terms and deadlines will be restarted as soon as the State of Alarm is declared ended.
It seems as if this measure does NOT affect to the filing of tax returns (including VAT returns), e.g. February VAT return still to be submitted by next 30 March.
3) AUTOMATIC SUSPENSION OF LIMITATION PERIODS
Statute of limitations and deadlines for exercising whatever actions or rights are automatically SUSPENDED as from 14 March while in force the "State of Alarm".
4) CUSTOMS TRAFFIC
Customs Authorities will adopt whatever measures are needed in order to guarantee customs traffic in all entry and border check-points at ports and airports. In this particular respect, priority will be given to essential goods reason why customs procedures in connection with the rest of the goods (not deemed essential) may suffer delays.
Sweden (Last updated: 09/09/2020)
Update 09/09/2020
Change of previously reported output VAT - bad debts
In the ongoing pandemic, many suppliers will face bad debts when the customers can not pay the invoices. Normally suppliers must meet high standards in order to reduce previously reported VAT, i.e. prove that the buyer has no ability to pay. According to the Swedish Tax Agency, it can be assumed that the buyer has no ability to pay a debt, if the following conditions are met:
- the buyer is a legal or natural person independently carrying on economic activity
- the invoice is issued 1 February 2020 – 31 December 2020
- the invoice is at least three months overdue
- a written reminder letter has been sent
- the seller and the buyer are not associated enterprises.
If all of the requirements are fulfilled the supplier is allowed to lower the taxable amount and reduce the previously reported output VAT on the supply, without issuing a credit note.
Should the supplier receive payment at a later stage, partly or in full, output VAT must be reported for the incoming payment.
Support from the state - discount on rental cost - VAT treatment
The government has decided to support a discount of rental costs from the landlord to a tenant in sectors that are hit hard by the pandemic. If the conditions regarding when the rental contract is signed, the period for which the premises have been rented and the discount has been agreed between the landlord and the tenant, are fulfilled - the landlord can get a state support of the discount up to a maximum of 50 percent. The application is made in arrears by the landlord. The last day for the application was 1 September 2020. There is also a limitation for contribution to a specific tenant up to Euro 800,000.
The Tax agency has expressed that the landlord shall report output VAT on the rent, including the contribution from the state although that contribution is not decided or received until later (given the circumstance that the rules of voluntary VAT on rents are applicable in the transaction). The tenant shall pay VAT calculated on the total rent (after the landlord’s discount) even though the rent is partially paid by the state.
If the rent is not paid and a bad debt is confirmed then 20 percent of the unpaid claims shall be considered as VAT, according to the Tax agency. This is despite the fact that the VAT, initially charged, was a larger proportion since the VAT was calculated also on the state contribution.
The VAT treatment is complicated and we recommend a discussion with your VAT consultant.
Support from the state because of reduced turnover due to covid-19
(Sw: omställningsstöd)
Such support from the state is considered to be a mere contribution, not a sale. No VAT shall therefore be reported on the support.
Sampling: Covid-19 and antibody
The tests performed in order to confirm whether a person is infected by Covid-19 or not, or has antibodies against Covid-19 are normally considered to be health care services that are exempt from VAT. This is under the condition that the tests are done by an institution that provides such health care.
Update 30/03/2020
The Swedish parliament has decided to agree to the government's proposed measures regarding a time limited opportunity for deferral with payments of taxes and fees (deducted preliminary tax on wages, employer’s social security fees and VAT). The amendments aim to quickly moderate the temporary liquidity issues that companies may suffer as a result of the spread of Covid-19.
The new rules regarding deferral of VAT will be applicable for businesses that report their VAT monthly, quarterly or yearly. The accounting periods are January to September 2020 (monthly or quarterly). For businesses with yearly reporting it shall be VAT that are reported between 27 December 2019 and 17 January 2021.
The deferral time is 12 months. It should be noted that the refund can cover a maximum of 3 months paid taxes. The rules will enter into force on 30 March 2020 (instead of previously stated 7 April). The rules will apply to companies with an acceptable financial track record. The rules will furthermore not apply to companies with larger tax debts.
Businesses that already have paid the above taxes to their tax account at the beginning of 2020 are eligible to have that tax refunded.
Interest rate of 1,25 % (on a daily basis) and a monthly fee of 0,3 % of the deferred amount shall be paid when the deferral ends.
Note that is also possible to apply for deferral according to the general rules of deferral, these rules are applicable on most of the taxes in Sweden. In that case the amounts, time, accounting periods etc must be assessed in the individual case and the business must be able to show that is has specific reasons for a deferral.
Update 25/03/2020
There has been a change in the Swedish proposal of the temporary rules for deferral of tax payments. The rules will come into force 30 March 2020 instead of 7 April 2020.
Further update to follow.
Update 17/03/2020
Extended deadlines and payment refund of payroll taxes, preliminary tax (on salary) and VAT. The rules regarding VAT are only applicable on businesses that declare their VAT monthly or quarterly.
Businesses that have paid the above taxes to their tax account from 1 January 2020 to March 2020 are eligible to have that tax refunded. The taxes must however be repaid, including interest, by the taxpayer within 12 months. It should be noted that the refund can cover a maximum of 3 months paid taxes.
The rules will apply to companies with an acceptable financial track record. The rules will furthermore not apply to companies with larger tax debts.
The rules are expected to come into force on April 7 2020, but can be applied retrospectively from January 1, 2020.
Further information to follow.
For more information please contact cecilia.rasmusson@pwc.com