VATLive > Blog > Europe > EU recommends VAT payment holidays for Covid-19 crisis economic boost

EU recommends VAT payment holidays for economic boost Covid-19 crisis

  • Mar 16, 2020

The EU’s European Commission (EC) has recommended that member states looking to provide businesses with immediate support during the coronavirus pandemic should consider Value Added Tax payment holidays. Avalara’s live global coronavirus Covid-19 VAT measures tracker.

VAT, and other tax payment deferments offer immediate cashflow relief for companies facing a drop-off in revenues. However, VAT cuts should be passed onto the consumer, and so not directly helping businesses. In addition, with the public lock-down, encouraging more shopping is not an attractive objective.

The EC has already indicated that it will relax state-aid rules for tax relief to specific businesses or industries.

Latest Coronavirus news

Register now for instant access to over 30 hours of recorded webinars with global tax experts and our latest resources covering the most important issues facing your business right now and for 2021.

VATlive newsletter

Sign up for our free newsletter stay up-to-date with the latest tax news.

VAT Voice Webinars

Stay ahead of the curve, sign-up to VAT Voice, our essential monthly round-up of VAT, GST and legislation news