We’re here to support you – above all, our commitment is to help your business remain at home in Europe. So we have collated the latest Covid-19 VAT news from the EU Tax Authorities so that you can file with confidence and full transparency. We will keep you updated as as the position is constantly evolving.
In some cases, there is limited information available at this stage and we are working with our partners in each country and liaising with the Tax Authorities to gain a full understanding of the measures that are being introduced. Where there is a change to the deadline for either the submission or payment of a VAT return or other declaration, we will advise you of your specific obligations separately.
This article was last updated on 1st April 2020 at 08:48 BST. Have a question? Then book a free call with our VAT experts to discuss any of the Covid-19 VAT updates below in more detail.
Currently, there is no postponement for the filing date and deadline for VAT returns. However, if the submission of a return be delayed or payment made late, it is possible to apply for a waiver of penalties that are imposed as long as the business can demonstrate that the delay was due to Covid-19 and its impact on the business.
A temporary one-month suspension of VAT payments for businesses with a turnover higher than DKK 50Million. This applies from the March 2020 tax return to 25th May 2020.
The Ministry of Finance is preparing to borrow up to EUR 1 Billion to boost business in a state of crisis due to the spread of Covid-19 and to mitigate the effects of the crisis.
Businesses can request a removal of the late-filing penalty. However they advise to file VAT returns on time wherever possible.
Businesses can apply for a tax payment suspension if they provide evidence of them affected by Covid-19. However, at present, it appears that it only applies to direct taxes but could be extended to VAT in due course.
Businesses can apply for a tax payments deferral. Businesses affected by Covid-19 will be exempted from enforcement of tax debts and late payment penalties until the end of 2020. There are other measures being discussed which could include extensions to deadlines for submitting VAT returns.
Affected businesses advised to continue to file tax returns on time; for SMEs, suspension of interest on late payment penalty fees for January and February 2020; businesses other than SMEs can also request support; and critical pharmaceutical products and medicines will be given a Customs ‘green routing’.
Business can defer tax payments on request. The Government also decided to facilitate refunds to businesses by requiring the State Revenue Service to reimburse the approved value added tax (VAT) amount to all taxpayers within 30 days of the VAT filing deadline, without accruing tax until the end of the tax year, with effect from 1st April 2020. Accordingly, it is also planned to return the amount of confirmed VAT currently accrued until the end of 2020, in accordance with the VAT returns already submitted for January and February 2020. A revision of the rate of VAT over payment is possible in 2021 if justified reasons are identified.
Affected business have more time to file a tax return and will remove late payment penalties.
Late penalty fees are removed until further notice. The Government encourages businesses to contact the tax authorities if they have any difficulties in paying taxes. Tax offices still open by appointment.
No updates from the Government yet.
The Government announced new measures including a VAT payment deferral and reduction of the low VAT rate. You can read our full update on this here. The tax offices closed for face-to-face meetings until further notice.
The Government confirmed the delay of the extension of the combined SAF-T monthly filing for large companies. They postponed the implementation from the 1st of April 2020 to the 1st of July 2020. Furthermore, businesses who, due to the coronavirus (Covid-19), will have problems paying their taxes on a timely manner can apply for a VAT payment holiday. The tax authorities are also hoping to make VAT refund payments more quickly.
The Government announced a series of measures including removal of late payment penalty fees.
Offices still currently open for face-to-face meetings but recommend remote interaction; the Government published measures to support the business environment including VAT credits.
The Government proposed the postponement of filing tax returns for all taxpayers from 31st March 2020 to 30th June 2020, even if a business filed the tax return in due time. There will also be a postponing the deadline for VAT. Exempt fines for late payments.
No updates from the Government yet.
Offices closed for face-to-face meetings.
The Government will take measures to support financially affected businesses with late penalty and interest fine easements on VAT payments for up to one year. The new rules apply from 7th April 2020, but can be applied retroactively from 1st January 2020.
The Government announced VAT payment deferrals and interest rate reductions. Businesses must still submit VAT returns as normal and report the VAT due in the period. You can read our full update here.
Following some confusion as to the extent of the 3 month VAT payment holiday put in place by the UK Government, HMRC have provided some welcome clarification on the application of the measures. You can read our update here.
Finally, it has been confirmed that any payments due under the VAT Mini One Stop Shop Regime will have to be paid – this is VAT due to the Tax Authorities in other Member States so the UK Government do not have control of these funds.
We will continue to monitor the situation and provide further updates as required.
What we’re doing…
As a result of Covid-19, we will be moving to remote working for the whole business from Wednesday 18th March. This in line with Government advice and as a business that already operates flexible working practices.
We’re here to support you – above all, our commitment is to keep your business trading confidently throughout Europe. This is of course an unprecedented and evolving situation. So we will keep you informed and support you to the best of our ability.
Book a free call with our VAT experts to discuss any of the above in more detail.