UK budget VAT payment holiday on coronavirus fears
- Feb 11, 2020 | Richard Asquith
The UK Chancellor, Rishi Sunak, has today announced a UK VAT payment holiday to support businesses facing difficult trading conditions as a result of the coronavirus (Covid-19) outbreak.
The UK joins a growing list of countries that are using VAT to provide immediate boosts to business during the Covid-19 emergency, including:
Global VAT measures already announced include:
- Denmark will temporarily postpone by one month payment deadlines of VAT for companies.
- Italy is considering a suspension of VAT remittance deadlines.
- Poland has delayed the extension of SAF-T VAT reporting, and introduced a VAT payment holiday.
- China has cut VAT on medical services, catering and accommodation services, and sundry personal services (e.g. hairdressing, laundry) and public transport. There is also a cut on masks and protective clothing. VAT has also been reduced from 3% to 1% on the cash accounting scheme for small businesses until the end of May.
- Japan has delayed Consumption Tax filing deadlines and payments by 1 month until April.
- South Korea has cut VAT taxes for small businesses, given tax boosts for consumers replacing their cars early and tax deductions on personal credit card spend.
- Vietnam is proposing cutting VAT for restaurants, hotels, transport and tourism companies.
- Greece has given a four-month extension to pay VAT that falls due at the end of March in the most affected regions.
- Indonesia has said it will waive taxes on hotels and restaurants in Bali and nine other tourist destinations for the next three months.
- Thailand has exempted face masks from import VAT.
- Nigeria is considering suspending its recently introduced VAT regime