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Coronavirus/Covid19 crises: VAT measures taken in the E.U.

Coronavirus (Covid19) – Support measures regarding VAT for businesses in the EU

What are the measures regarding VAT taken by EU member states in response to the current Coronavirus epidemic? Our special report sheds light on this situation.

Encouraged by the EU Commision, EU member states are currently taking measures regarding VAT to allow business affected by the coronavirus to limit cashflow problems.

Moreover, some member states have postponed the deadlines for submitting 13th directive VAT refund claims for businesses outside the E.U.

Warning: this information is given as an indication and is likely to change very quickly.

Update: Friday, April 3rd 2020 – 2:10 pm C.E.T.






CountrySupport measures regarding VAT
AustriaThe payment of VAT can be postponed until 30 September 2020 or a payment in instalments can be set up until 30 September 2020.   

Cancellation of penalties for VAT paid late can be requested.

The deadline for filing the annual VAT return 2019 is postponed to 31 August 2020.

Until 31 August 2020 interest for late returns not submitted on time will not be charged.

BelgiumMonthly declaration for February 2020 – VAT and Intrastat filing automatically postponed to 6 April, VAT payment automatically postponed to 20 May  

Monthly return for March 2020 – filing of VAT and Intrastat returns automatically postponed to 7 and 6 May, VAT payment automatically postponed to 20 June

1st quarter 2020 declaration – VAT and Intrastat filing automatically postponed to 7 May, VAT payment automatically postponed to 20 June

Businesses that file monthly VAT returns can apply for an accelerated refund of the February 2020 VAT credit. Thanks to this measure, the refund will take place by 30 April 2020 at the latest instead of 29 May 2020. The application for the accelerated refund must be submitted by 3 April 2020 at the latest.

BulgariaBulgaria has announced that there will be no deferral of VAT declarations and VAT payments, nor of Intrastat declarations.
CroatiaTaxpayers affected by the COVID-19 situation (nationals and non-residents registered for VAT purposes in Croatia) who had a turnover of up to HRK 7,500,000 (€ 1,000,000) in 2019 are entitled to defer VAT may submit a request for deferral of VAT payment under the following circumstances :
– On the day the application is submitted all tax returns must be filed and all payment obligations must be settled
– Clients must prove in the Application that they are unable to pay taxes by either writing the data on the previous month’s drop in turnover compared to the same month in the previous year, or substantially explain why they expect a drop in turnover in the next three months.   

If the request is justified, VAT obligation due in time of special circumstances by 20.06.2020 will be delayed by 3 months. By accepting the Application, it remains the companies obligation to file all tax returns within the deadlines

The right to defer VAT liabilities cannot be achieved for February VAT, which was submitted by 20.03. and which is due by 31.03.

CyprusTemporary suspension of VAT payments without imposition of penalties and interest for the periods ending 29 February 2020, 31 March 2020 and 30 April 2020 until 10 November 2020, provided that the corresponding VAT returns are submitted within the usual time limits.
These measures apply to non-residents as well.
Czech RepublicLate but spontaneous submission of the Control Statement will not be punished by the penalty of CZK 1000 until 31/07/2020. However, if the late filing is not spontaneous but is made after a reminder from the tax authorities, companies will have to prove that the delay is due to Covid19 in order to obtain the penalty waiver.
DenmarkVAT returns are deferred for 1, 3 or 6 months depending on whether the returns are filed monthly, quarterly or half-yearly.
EstoniaThe 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.
FinlandBusinesses affected by the Covid19 may request a deferral of VAT payments, as well as reductions in penalties and late payment interest.
FranceNo VAT-related measures yet.
GermanyUntil 31 December 2020, companies that are directly and significantly affected by Covid-19 may file applications for an extension of the deadline for payment of VAT without interest. Regarding VAT after 31 December 2020, requests for extension of the VAT payment deadline must be particularly justified.
The provisions also apply to non-resident companies.
GreeceCompanies affected by the Covid19 can benefit from a 4-month deferral of the VAT that should have been paid in March 2020.
Suspension of the collection of VAT debts for businesses affected by the occurrence and dissemination of COVID-19.
HungaryCompanies may apply for payment defferal of the amount of tax due.
The application is subject to the payment of a procedural fee of HUF 10,000.
IrelandFor non-residents companies, are postponed to June 30 :
– Intrastat declarations for February, March and April.
– the annual VAT returnOn the other hand, VAT declarations and VAT payments for February, March and April must be made within the usual deadlines.
ItalyFor non-residents companies, are postponed to June 30 :
– Intrastat declarations for February, March and April.
– the annual VAT returnOn the other hand, VAT declarations and VAT payments for February, March and April must be made within the usual deadlines.
LatviaThe taxpayer in the crisis-affected sectors is entitled to apply for the extension of the tax payment term.
The taxpayer submits a motivated application not later than within two months from the due payment term or the day of the law’s coming into effect.
LithuaniaBusinesses affected by the Covid19 may request a deferral of VAT payment.
LuxembourgDue to the Coronavirus pandemic, there is no administrative penalty for exceeding a filing deadline for VAT returns. This tolerance applies until the administration indicates otherwise.   

The deadlines for the submission of intrastat declarations have been extended as follows :
February 2020: April 24, 2020
March 2020: May 15, 2020
April 2020: 08 June 2020
May 2020: June 30, 2020
June 2020: 22 July 2020

MaltaPostponment of VAT payment which fall due in March and April 2020.
VAT dues to be settled in two equal instalments with the two quarterly returns immediately following the quarter whose dues would have been deferred.
MaroccoVAT returns and VAT payments must be made within the usual deadlines.
NetherlandsBusinesses can apply for a deferral of VAT payments for three months if they can prove that they are in difficulty as a result of the crisis. A longer deferral can be requested, but additional information will have to be provided.
A completed application will trigger an automatic suspension of VAT obligations.
The tax office can cancel penalties or interest for late payment. This cancellation is made upon receipt of the application.
Interest for late payment will be reduced from 4% to 0.01% from 1 June if the delay is not related to a crisis.
Possibility for businesses with regular VAT credits on quarterly VAT returns to switch to monthly returns for better cash flow.
NorwayThe government announced that it will reduce the reduced VAT rate to 8% (currently 12%) on: transport, cinema, cultural and sports events, accommodation in hotels
PolandVAT returns and VAT payments must be made within the usual deadlines. However, businesses in financial difficulties due to the pandemic may request payment delays or payment instalments without penalty.

The deadline for the submission of intrastat declarations for March 2020 is extended until 20 April 2020.

The entry into force of the new SAF-T JPK VAT file initially planned for large companies on 1 April 2020 is postponed to 1 July 2020.

These measures also apply to non-resident businesses.

PortugalBusinesses affected by the Covid19 can benefit from a staggering of VAT payments over 3 months (without interest) or 6 months (with interest on the additional 3 months).
The measure is automatic for companies whose turnover is less than 10 million euros in 2018. The other companies must apply and justify a decrease in turnover in the first quarter of 20% compared to 2019.
RomaniaNo action has been taken for foreign companies at this time. VAT returns and VAT payments must be made within the usual deadlines.
SlovakiaDiscussions are under way, but no concrete action has been taken yet.
SloveniaNo measures announced yet.
SpainSpain has announced that the measures initially taken for administrative management do not apply to VAT.
No VAT measures announced yet.
SwedenVAT payments can be deferred from 3 months to 1 year (retroactive to January 2020). However, VAT returns must be submitted on time.
Interest rate: the administration will apply a 1,25% interest rate counting from the date that the VAT is due until the payment.
Defferal fees: the fees represent 0,3 % of the deferred amount per month started.
SwitzerlandThe Swiss tax authorities are to grant late penalty interest relief for VAT and customs duty payments until the end of December 2020 in response to the COVID-19 crisis.
United KingdomVAT returns must be filed within the usual time limits.   

However, VAT payments from March to June 2020 can be postponed until March 31, 2021 without penalties or interest on late payments. This deferral is automatic and also applies to non-residents.





In addition, certain EU member states have postponed the deadline for submitting 2019 VAT refund claims under 13th Directive procedure (companies established outside the EU).

CountryDeadlines for submitting 13th Directive VAT refund claims
Croatiapostponed to 09/30/2020
Czech Republic06/30/2020
Denmarkpostponed to 09/30/2020
United Kingdom06/30/2020
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