VATLive > Blog > Worldwide > World turns to VAT cuts on COVID-19 coronavirus threat

World turns to VAT cuts on coronavirus COVID-19 threat

  • Jul 2, 2020 | Richard Asquith

Keep up to date with the latest coronavirus pandemic VAT rate cuts with Avalara's Covid-19 VAT / GST rate cuts tracker. Countries around the world are turning to emergency tax breaks to support their stuttering economies under the coronavirus (COVID-19) threat. VAT global measures already announced are below, and Avalara is configuring these into its VAT/GST reporting and calculation offerings to ensure users receive filing and payment benefits. For free updates of this list, sign up to receive Avalara's free VAT newsletter.

Latest updates

 
  • Saudi Arabia 4 Jul, accelerated VAT creidts, hikes VAT to 15%
  • Ireland 3 Jul, potential tourism VAT cut; interest waiver on June and July VAT payments
  • Malaysia 2 Jul, sales and services tax payment delays and temp rate cuts
  • Saudi Arabia 1 Jul, VAT hike to 15% today
  • Germany 1 Jul, temporary VAT cut to 16% till 31 Dec 2020
  • Chile 30 Jun, speedy VAT credits for small businesses
  • Canada 30 Jun federal government ends GST payment delays, although businesses may apply for exceptions
  • German transition rules for the temporary VAT cut.
  • Philippines 29 May, input VAT deductions extended
  • Sweden 29 Jun, relief for VAT on bad debts over 90 days old
  • Romania 27 June, VAT credits paid without audit; return payments deferred until 25 Oct.
  • Lithuania 27 June, 13th Directive reclaims delay. Has confirmed VAT payment delays or write-offs of up to one year. 
  • Pakistan 26 June, sales tax filing postponement. cut in sales tax for electronic cash registers

Updates by region:

Europe

  • Ireland 3 Jul, potential tourism VAT cut; interest waiver on June and July VAT payments
  • German transition rules for the temporary VAT cut
  • Sweden 29 Jun, relief for VAT on bad debts over 90 days old
  • Romania 27 June, VAT credits paid without audit; return payments deferred until 25 Oct.
  • Lithuania 27 June, 13th Directive reclaims delay. Has confirmed VAT payment delays or write-offs of up to one year. 
  • Germany 24 June, 1-month softlanding B2B invoices on VAT cut; implementation details of temporary cuts of VAT from 19% to 16%
  • Cyprus 23 June, Q2 payments delayed
  • Greece 23 June, 1-year VAT deferrments. Delays island VAT cut
  • Czech Republic 22 June, Delays EEA VAT cash registers. Accomodation & events VAT cut to 10%
  • UK 21 June, possible temporary VAT cut. Warns of ending of VAT payment deferment
  • Italy 17 June, mulls VAT cut. VAT payments delayed until 16 September
  • Belgium 17 June, June and July VAT returns delay option. Import VAT deferments. Catering services VAT cut from 12% to 6%
  • Austria 12 June, restaurant VAT rate cut. Cash-VAT threshold doubled. Cuts non-alcholic beverages VAT to 10%. Implements VAT payment and penalty deferments.
  • Slovakia 11 June, non-resident businesse can apply for deferments
  • Bulgaria 11 May, confirms cut to catering, restaurant, e-books and printed book VAT rate to 9% until 31 Dec 2020
  • Denmark 3 June, new delays on VAT payments. VAT loans for small businesses
  • Poland 27 May, VAT electronic cash registers delays. Poland is offering a VAT payment delay . Delayed the extension of SAF-T VAT reporting.
  • Netherlands 27 May, Cut in late interest charge. VAT easements extended until 30 September 2020.
  • Malta 27 May, postponed VAT payments to end June must be paid by 31 Oct
  • Spain 25 May, filing deadline suspensions withdrawn 1 June
  • Macedonia 25 May, delays VAT returns
  • Portugal 23 May, VAT cut on health clubs and gyms. Mar-May returns delayed again
  • Poland 19 May, potential delay to SAF-T to 2021
  • Slovenia 18 May, ending COVID-19 VAT measures 31 May
  • Luxembourg 15 May, VAT penalties for late returns are reimposed. Businesses may apply for VAT payment deferment.
  • Norway 13 May, Jan-Feb VAT return delayed to June. Reduced VAT rate cut further from 1 April. Deferred VAT payments.
  • EU proposes delaying e-commerce VAT package to 1 July 2021
  • Finland 8 May, reduced late payment interest. Businesses to be offered VAT loans with 3% interest charge. 3-month delays on VAT payments.
  • France 1 May, foreign VAT relaims extension. Delays exporter of record changes. Discounts on VAT payments for April and May. PDF and scanned invoices valid for VAT instead of paper.
  • Hungary 1 May update, new banking tax. Speed VAT credit refunds. Emergency retail tax. VAT payment delays on application.
  • Ukraine 30 April, VAT rate cuts. Ukraine will not charge late interest on VAT payments until after May 2020.
  • Russia 28 April, limited delays on Q1 VAT returns.
  • Turkey 24 April, second VAT payments and filings postponement.
  • Iceland 23 April, New payment deadline 6 May. Suspension of Accomodation Tax.
  • Croatia 16 April, deferral available on application for March and April VAT returns.
  • Moldova 1 April, VAT rate cut on hospitality services will be from 20% to 15% (not 10%)
  • UK Jersey 31 March, postpones GST payments March to May.
  • Russia 29 March, tax payment deferrals for all small businesses, but not extended to VAT.
  • Iceland 24 March, offers delayed VAT payments until 2021. Hotel tax withdrawn until the end of 2021.
  • Latvia 24 March offers tax payment delays and speedy VAT credit refunds.
  • Estonia 23 March, is to provide a VAT payment holiday until 1 May. But further easements are promised.
  • Switzerland 23 March, offers VAT and customs payment holiday until the end of 2020.
  • EU VAT reclaims delays to deadlines across Europe.
  • Moldova VAT rate cut for COVID crisis.
  • Denmark delays on VAT for small and large businesses.
  • Jersey is to allow late Goods and Sales Tax payments.
  • EU Commission has suggested countries provide VAT payment holidays, and act in unison. It has also relaxed the state-aid rules, which would permit VAT measures benefiting only specific businesses or sectors.
  • Georgia is doubling funding for company VAT credit refunds.

North and Central America

  • Canada 29 Jun federal government ends GST payment delays, although businesses may apply for exceptions
  • United States 29 June, from Avalara in the U.S., the latest on states' sales tax measures.
  • Costa Rica 24 June Additional 3-month payment delays. considering 1-year VAT cut; improved deductions on tourism
  •  
  • Mexico 9 June, considering VAT cut
  • Mexico 1 May, speed VAT credits. 
  • Panama 20 April, delays VAT filings by 120 days.
  • Guatemala 29 March, allows late VAT returns.
  • Jamaica plans to cut its General Consumption Tax from 16.5% to 15%.

Middle East

  • Saudi Arabia 4 Jul, accelerated VAT creidts, hikes VAT to 15%
  • Israel 19 May, postponed VAT returns and payments
  • Lebanon 2 May, Q1 Value Added Tax return postponement
  • Palestine 3 May, VAT credit refunds and suspension of penalties.
  • UAE 22 April, offers delayed March VAT returns and payments till 28 May
  • Iran 9 April, delays VAT returns during COVID-19 crisis.
  • Saudi Arabia 21 March, delays VAT payments by three months.

Africa

  • Egypt 15 May, 3-month VAT payment holiday for tourism sector
  • South Africa 7 May, relief for small VAT payers. Limited VAT reliefs.
  • Botswana 4 May, delayed VAT returns.
  • Senegal 23 April, speedy VAT credits.
  • Kenya 18 April, update, VAT cut to 14% confirmed and backdated to 1 April 2020.
  • Botswana 12 April, accelerated VAT credit repayments.
  • Uganda 29 March, postpones VAT compliance requirements.
  • Tunisia 30 March, VAT credit accelerations.
  • Nigeria 27 March, is delaying the VAT returns deadline.

Asia

  • Malaysia 2 Jul, sales and services tax payment delays and temp rate cuts
  • Philippines 29 May, input VAT deductions extended
  • Pakistan 26 June, sales tax filing postponement. cut in sales tax for electronic cash registers
  • Indonesia 23 Jun, VAT on digital services delayed. Has increased VAT credit limit
  • India 15 June, GSTR returns delayed again. E-way bill expiry extended. Delays annual GST return further
  • Thailand 11 June, VAT on foreign digital e-services. Delays VAT returns
  • China 23 May, VAT easements extended to 31 Dec 2020
  • Taiwan 19 May, speedy VAT credits available
  • South Korea 17 April, exempts small taxpayers from VAT payments until 31 Dec 2020. It had already cut VAT taxes for small businesses, given tax boosts for consumers replacing their cars early, and provided tax deductions on personal credit card spend.
  • Japan 16 April, businesses may apply for Consumption Tax exempt status. One-year Consumption Tax payment delays on application.
  • Vietnam 13 April, e-invoicing has been postponed. Agreed 5-month VAT payment for businesses and households. Vietnam is proposing cutting VAT for restaurants, hotels, and transport and tourism companies.
  • Kyrgyzstan 13 April, delays in VAT cash registers and e-invoicing.
  • Philippines 11 April, 15 day delay on Q1 returns due now 30 April.
  • Singapore 7 April, GST returns and payments delayed one month.
  • Sri Lanka 31 March, pushes back February and March VAT payments.

Oceania

  • New Zealand 1 May, right to request GST filing, reporting period changes or payment delays. Limited help for businesses on Goods and Services Tax.
  • Australia 17 April, import GST relief.
  • Australia is offering speedy credits on Goods and Services liabilities.

South America

  • Chile 30 Jun, speedy VAT credits for small businesses. Chile has already provided VAT payment break till end of June for small enterprises.
  • Uruguay 23 June, May VAT payments delayed e-invoicing rollout delayed
  • Colombia 11 June, reduced late payment interest. VAT exemptions on hard-hit sectors. 3-day VAT suspension.
  • Argentina 23 May, April VAT returns and payment delay
  • Paraguay 23 May, delays VAT on e-services
  • Bolivia 22 May, e-invoices implementation delayed. Extends VAT returns and payments to July
  • Peru 19 May, up to 6 months' delay on VAT payments
  •  
  • Brazil 7 April, update 4 month delay to PIS/COFINS payments. It had already suspended tax audits and eases import rules.
  • Ecuador 6 April, postponements on returns.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: richard.asquith@avalara.com. He is part of the European leadership team which won International Tax Review's 2019 Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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