The global COVID-19 outbreak is significantly affecting businesses and their employees. Hence countries worldwide are reacting to it. This overview shows the tax measures taken by various countries worldwide related to COVID-19.
World
High level list COVID19 VAT measure different jurisdictions
Australia is offering speedy credits on Goods & Services liabilities (Status: March)
Austria Temporary reduction of the VAT-rate to 5% for gastronomy, lodging industry, cultural and publishing sector from 1st of July 2020 to 31st of December 2020.
Belarus The Belarusian government is not rushing with adopting measures to combat the Coronavirus: as of today, the borders are open, Belarus is not on lockdown, and not even an individual quarantine policy for educational establishments has been introduced.
Belgium The Belgian government approved to temporarily reduce the VAT-rate that applies to certain restaurant and catering services from 12% to 6% (as from the 8th of June 2020 up to and including the 31st of December 2020).
In this respect, it is important to note that reduced rate also applies to the supply of beverages without meals (to the extent that it is accompanied by a sufficient number of relevant ancillary services) at all possible outlets in drinks (cafes, taverns, etc.). Alcoholic beverages (i.e. beers with an actual alcoholic strength by volume exceeding 0.5% vol. and other beverages with an actual alcoholic strength by volume exceeding 1.2% vol.) are specifically excluded from this reduced VAT-rate.
Brazil Postponement of the payment of the PIS and COFINS federal contributions and of the filing of ancillary federal tax obligations. Provision of temporary flexible deadlines and procedures to request and terminate special customs regimes. Reduction to zero of the import duty and federal excise tax (IPI) rates on several products. Several Sates extended deadlines to comply with ancillary obligations related to the State-VAT (ICMS) and granted ICMS exemptions, taxable basis and rates reductions on transactions with hygiene, medical and pharmaceutical products. Many municipalities extended deadlines to comply with tax ancillary obligations and postponed deadlines to pay the Tax on Services (ISS) levied on determined services.
Bulgaria: As a temporary measure to combat the negative effects on businesses due to the COVID-19 pandemic Bulgaria reduces VAT from 20% to 9% on restaurant and catering services, on books and other printed materials and on baby food and diapers. The measure took effect on 1 July 2020 and will be in force until 31 December 2021.
Canada will be providing federal tax reliefs from a new relief fund announced on 12 March. Details to follow. (Status: March)
China China offers VAT reliefs to combat COVID-19 impacts.
Colombia will provide delayed VAT payment terms for the first semester of 2020. (Status: March)
Costa Rica has provided a 3-month VAT payment deferment for taxpayers from 15th March. (Status: March)
Croatia The amended legislation has allowed taxpayers to defer payment of VAT until the moment of settlement of the invoices issued by the taxpayers. The prescribed deferral period is 3 months, with the possibility of extension to additional 3 months. (Status: April)
Cyprus A temporary suspension of the obligiation to pay VAT is possible, if the VAT will be gradually paid by 11 November 2020. Eligible for companies whose turnovers are not more than EUR 1 million according to the tax return submitted in 2019 or where turnovers have been decreased by 25% due to COVID-19. (Status: April)
Czech Republic 'The government of the Czech Republic allows following reliefs to combat COVID-19: Deferral of VAT payment upon request, waiver of interest on late payments and interest on the deferral of tax, waiver of the fine for late submission of tax returns, control reports and failures to submit control reports, waiver of administrative charges and exemption from VAT and customs duties on goods imported from third countries for the benefit of disaster victims. The government of the Czech Republic allows following allows following reliefs to combat COIV-19: Deferral of VAT payment upon request, waiver of interest on late payments and interest on the deferral of tax, waiver of the fine for late submission of tax returns, control reports and failures to submit control reports, waiver of administrative charges and exemption from VAT and customs duties on goods imported from third countries for the benefit of disaster victims.
Denmark The Danish Parliament is expected to implement a bill enabling small and medium sized businesses to apply for an interest-free loan equal to the amount of paid VAT in their latest VAT return submitted.
Estonia The Estonian Tax and Customs Board has suspended calculation of interest on tax debts from 1 March 2020 until 1 May 2020.
EU Commission has suggested countries provide VAT payment holidays, and act in unison. It has also relaxed the state-aid rules, which would permit VAT measures benefiting only specific businesses or sectors. (Status: March)
Finland Companies can request the VAT paid at the beginning of 2020 to be returned to them by requesting a payment arrangement for the VAT returned by the Tax Administration.
France The French government does not allow deferral of payment or VAT reduction during the coronavirus crisis but temporarily relaxed VAT calculation and "paper" invoicing rules.
Georgia is doubling funding for company VAT credit refunds. (Status: March)
Germany Germany is planning to temporarily cut the regular VAT rate from (currently) 19% to 16% and the reduced VAT rate from (currently) 7% to 5%. Changes shall apply for the period 1 July 2020 to 31 December 2020. Postponement of the due date for paying import VAT to the 26th of the following month shall also be implemented.
Greece Payments of VAT due between 11 March and 30 April are suspended until 31 August for specific enterprises. (Status: April)
Hungary The Hungarian Government appealed to the European Commission to exempt the import of medical equipment that are necessary to overcome the virus, such as face-masks and ventilators, from customs duties and VAT.
Ireland The application of interest on late payments is suspended for small and medium-sized enterprises for January, February, March and April 2020. (Status: April)
India has extended the timelimits for monthly GST filings for the periods March 2020 to May 2020 and the Annual Return and Audit for the FY 2018-19 until 30 June 2020. It has also delayed the implementation of new return filing system and E-invoice registration until 1 October 2020.
Indonesia has said it will waive 10% consumption taxes on hotels and restaurants in Bali and nine other tourist destinations for the next three months. It will also grant postponements of payments of import VAT for businesses, and offer accelerated VAT credit repayments for manufacturers. (Status: March)
Italy has implemented further deferment of VAT payments and VAT fulfillments deadlines regarding April and May.
Jamaica plans to cut its General Consumption Tax from 16.5% to 15%. (Status: March)
Japan is considering a temporary Consumption Tax rate reduction from 10% to 5%. It has already delayed filing deadlines and payments by one month until April. (Status: March)
Latvia Tax payment term extension up to 3 years without late payment interest available if:
1. income from economic activities in March, April, May or June 2020 have decreased by at least 30 per cent due to spread of Covid-19 in comparison to the monthly average of 2019;
2. income from economic activities in March, April, May or June 2020 have decreased by 20 per cent due to spread of Covid-19 in comparison to the monthly average of 2019, and who comply with at least one of the following criteria:
- the crisis-affected employer’s export amount in 2019 reaches 10 per cent of the total turnover or is at least 500,000 euro;
- monthly average gross salary paid by the crisis-affected employer in 2019 is at least 800 euro;
- long-term investments in fixed assets as at 31 December 2019 is at least 500,000 euro.
General tax payment term extension up to 1 year with the reduced late payment interest of 0.0125 per cent available to all companies upon request.
Lithuania The State Tax Inspectorate (STI) could be asked to extend the payment term for Corporate Income Tax, VAT, Personal Income Tax and other taxes administered by the STI.
Luxembourg: A failure in filing VAT returns will not be subject to fines. This measure applies until otherwise indicated by the government. (Status: April)
Malaysia Malaysia has extended the period for submission and payment of SST returns for taxable periods ending in February and March respectively. Submission for both taxable periods are due on 30th April, while payments are given extension until 13th May. (Status: April)
Malta announced 14 March a VAT payment holiday for businesses and self-employed for March and April. VAT credit refunds will also be accelerated. (Status: March)
Netherlands Deferral of VAT payments for a period of three months upon request. (Status: April)
Pakistan The Federal and Provincial Governments of Pakistan have taken sales tax (VAT) relief and facilitation measures during the COVID-19 spread. The Federal Board of Revenue has extended the payment and filing deadlines. In respect of tax period March 2020, the filing of sales tax return is due by 30’ May’ 2020. Tax and duty exemptions have been allowed on import of certain essential medical equipment, goods and services till 30’ June’ 2020.
Poland The deadline to file SAF-T returns is postponed until 1 July 2020. (Status: April)
Philippines The Philippines’ tax authority, i.e., Bureau of Internal Revenue, extended the filing and payment of the monthly and quarterly VAT returns. (Status: June)
Portugal Portugal suspends until 30 June 2020 all tax enforcement procedures in progress or initiated within that period. Moreover, Portugal exempts donations of goods used to fight the pandemic (e.g., medical or protective equipment) from VAT under certain conditions.
Romania Deliveries of individual protective masks and medical ventilators for intensive therapy made to specific public institutions until October 1, 2020 are VAT exempt with deduction right for the incurred acquisitions. The supplier justifies the VAT exemption with the declaration on responsibility regarding the destination of the goods, made available by the beneficiary institution, signed by its legal representative, latest at the time of delivery. - Emergency Government Ordinance no. 99 / 2020 regarding some fiscal measures published in Official Gazette 551 / 25.06.2020 (Status: July)
Serbia VAT is not calculated and paid for the sale of goods or services performed free of charge by the VAT taxpayer to the Ministry of Health, the Republican Health Insurance Fund or a health institution in the public domain, and the VAT payer is entitled to deduct the previous tax on the basis of that turnover. (Status: March)
Singapore GST will remain at 7 per cent for the time being. Furthermore, the GST rate will not be raised in 2021. The government announced a GST voucher for all eligible households living in Singapore public housing. GST will remain at 7 per cent for the time being. Furtermore, the GST rate will not be raised in 2021. The government announced a GST voucher for all eligible households living in Singapore public housing.
Slovakia The VAT due won't be considered as an outstanding payment and there won't be levied any penalties in connection with the VAT due, if the VAT due will be paid till the end of the month following the month in that the emergency state in Slovakia was called off. (Status: March)
Spain From the 22nd of April to the 31st of July 2020, the VAT-tax rate applicable to supply of goods, imports and intra-community acquisitions of goods to fight against COVID-19 (included in the Annex of the Royal Decree-law 15/2020) whose recipient is a public-law entity, a clinic or hospital center or social-nature entities, will be 0%. Tax returns whose period of submission is from April 15th to May 20th have been extended until May 20th, 2020.
South Korea has cut VAT taxes for small businesses, given tax boosts for consumers replacing their cars early, and provided tax deductions on personal credit card spend. (Status: March)
Sweden A defereral of VAT payments can be granted for up to a year. (Status: April)
Thailand has exempted face masks from import VAT and reduced time waiting for VAT refunds to 15 days. (Status: March)
Turkey Deferral of April, May and June payments of the withholding, VAT withholding and Social Security Institution (SSI) premiums for the tax payers who are engaged in specific field of activities. (Status: April)
UK The UK Government is allowing all UK VAT registered businesses to defer any VAT payments arising during 20 March 2020 to 30 June 2020 until 31 March 2021 without incurring penalties or interest. VAT returns should be completed and submitted as normal.
US California suspends for 60 days interest on late sales tax remittances due to effects of virus or complying with health requirements. (Status: March)
Vietnam Vietnam is granting extensions on timelines for tax payments of VAT, CIT and PIT and for finalizations of PIT.
