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Covid-19 related VAT easements and provisions (July 1 update)

We’ve compiled the latest VAT updates from around the world which are related to the COVID-19 pandemic.

Austria:

update 1/7/2020

Reduction in the VAT rate to 10% on non-alcoholic beverages until the end of 2020. As provided in the law, this applies for supplies made after 30 June 2020 and before 1 January 2021.

Belgium:

update 1/7/2020

VAT rate reduction from 21% to 6% for the hospitality sector until December 31st 2020.

Bulgaria:

update 1/7/2020

VAT and Duties exemption on Imports of Goods to Combat COVID-19 extended until 31 October 2020.

Colombia:

update 1/7/2020

  • VAT exemption holidays for consumers on 19 June, 3 July, and 19 July 2020
  • Reduction in the consumption tax rate for restaurants, cafeterias, and other similar food and beverage services is reduced from 8% to 0% until 31 December 2020
  • VAT exemption on leases of commercial property until 31 July 2020

Cyprus:

update 1/7/2020

Temporary reduction of the VAT rate applicable to hotel accommodation, restaurant services and certain passenger transport from 9% to 5% from 1 July 2020 until 10 January 2021.

Germany:

update 1/7/2020

VAT will be reduced for six months from 1 July 2020 from 19 to 16 percent and from 7 to 5 percent. The reduced rates apply until 31 December 2020.

Greece:

update 1/7/2020

VAT rate in the tourism sector reduced from 9% to 5%. Applicable for the period from the 1st of July, 2020 to the 9th of January, 2021. This includes: hotel accommodation, hotel apartments accommodation and similar establishments, including holiday accommodation; restaurant and catering services;transport of passengers and their accompanied luggage.

Italy:

update 1/7/2020

The deadline for payments of tax due resulting from VAT returns has been extended from 30 June 2020 to 20 July 2020 for certain taxpayers. A 0.4% interest will then apply to late payments made between 21 July 2020 and 20 August 2020.

Kazakhstan:

update 1/7/2020

Refund for local exporters and VAT exemptions for manufacturers of vehicles and agricultural machinery. Local exporters will enjoy a simplified VAT refund, that is, 50% without inspection, 50% after inspection.

Norway:

update 1/7/2020

  • Sales and leasing of vehicles that use only electricity for propulsion are exempt from VAT
  • Sales of services that are directly related to the construction of embassy buildings are exempt from VAT
  • Sales of newspapers, including electronic newspapers, which mainly contain text and still images, are exempt from VAT

Philippines:

update 1/7/2020

Deadlines for VAT Refund Application for the calendar or fiscal quarters ending between 31 March and 31 May 2018 further extended and new deadline for the quarter ending 30 June 2018 in response to the COVID-19 outbreak in the country. The VAT refund claims are now due on the following dates:

●         Calendar quarter ended 31 March 2018 –  15 July 2020

●        Fiscal quarter ended 30 April 2018 – 31 July 2020

●        Fiscal quarter ended 31 May 2018 – 15 August 2020

●        Calendar quarter ended 30 June 2018 – 31 August 2020.

Poland:

update 1/7/2020

Change in the VAT regulations related to the import of goods simplification in order to increase the competitiveness of the Polish ports against ports from other EU Member States from 1 July 2020.

New matrix of VAT rates from 1 July. The new matrix of VAT rates was initially to become effective on 1 April 2020.

Romania:

update 1/7/2020

Postponement of payments of fiscal obligations including VAT until 25th October.

Serbia:

update 1/7/2020

Serbian VAT authority has extended the 13th Directive Deadline  (originally set at 30 June 2020) by 3 months. Non-resident companies now have until 30 September 2020 to file their VAT refund claims on expenses incurred in 2019.

Thailand:

update 1/7/2020

Thailand allows deduction and VAT exemption for donations made by taxpayers.

Cabinet approves VAT bill regarding taxation of foreign e-business (digital services).

For previous context and updates of VAT elements and provisions from around the world, please also read

Coronavirus: Tax provisions and Easements by Country

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