Netherlands COVID-19 VAT 3-month payment delay
- Mar 23, 2020 | Richard Asquith
The Dutch tax office has confirmed that it will not be enforcing the non-EU importer of record rules yet in light of the coronavirus epidemic.
The Dutch tax agency had previously published details of a range of Value Added Tax easements for businesses during the coronavirus epidemic. Other taxes will have similar easements.
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Dutch VAT easements include:
- Businesses may apply for delayed VAT payments for three months if they can show hardship as a result of the crisis. A longer period may be requested, but this will require additional supporting information.
- A completed application will trigger an automatic pause on VAT liabilities.
- The tax office may cancel any penalties or interest for any late payments. This is done as soon as the application is received.
- Late penalty interest will be reduced from 4% to 0.01% from 1 June if found delay not related to crisis.
- Open VAT assessments will be amended if it appears VAT should be less due to the pandemic.
- Extra VAT relief on customer bad debts will be granted if related to crisis.
- Option for businesses with regular VAT credits on quarterly VAT returns to change to monthly returns for better cashflow.
Businesses may also bring forward 2020 VAT reclaims from other EU member states via 8th Directive claims.