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

World turns to VAT cuts on coronavirus COVID-19 threat

  • Apr 7, 2020 | Richard Asquith

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.

  • Italy 7 April, update. Tax office confirms non-resident have no right to VAT delays. Italy has suspended payments for large businesses. Smaller enterprises are delayed longer till 30 June.
  • Singapore 7 April. GST returns and payments delayed one month.
  • Norway 7 April update, SAF-T 10 April deadline may be extended. Reduced VAT rate cut further from 1 April. Deferred VAT payments.
  • Netherlands 7 April, update measures extended to other indirect taxes. Customs confirms no enforcement of non-EU importer of record rules. Taxpayers in difficulties because of the current crisis may apply for a three-month or longer VAT payment holiday.
  • Brazil 7 April, update 4 month delay to PIS/COFINS payments. It had already suspended tax audits and eases import rules.
  • India 6 April, update e-way bills will not expire during COVID-19 lockdown. India has already provided delays to GST filings.
  • Chile 6 April, update delayed filings extended to September. Chile has already provided VAT payment break till end of June for small enterprises.
  • Peru 6 April, offers VAT returns delays
  • Ecuador 6 April, postponements on returns
  • Ireland 4 April, update - the waiving of late payments charges has been extend to April. Confirmation that automatic payment delays only for businesses <€3m turnover. Others must apply to the Revenue. Returns must still be filed on time.
  • Pakistan 4 April, update further delays of sales tax payments.
  • Croatia 3 April, update proposal to delay VAT payments till sales invoice settlement. Offers three-month VAT payment deferment and long-term repayment schedule.
  • UK 3 April, update import VAT still payable. Already confirmed delays for payments-on-account. Delays MTD for VAT phase 2 launch. MOSS VAT excluded from 3-month VAT holiday. Foreign businesses entitled to payment holiday. Taxpayers on Direct Debits must cancel them if they wish to take advantage of the VAT holiday. HMRC is deferring all VAT payments until June 2020. Any deferred VAT is due by 31 March 2021. Returns must still be filed.
  • Poland 3 April, update VAT off 'white list' payments reporting delayed. Has delayed March Intrastat filings. It is offering a VAT payment delay with no interest charges. Delayed the extension of SAF-T VAT reporting and new VAT rate matrix.
  • Iceland 3 April - VAT and tax filings measures. Suspension of Accomodation Tax.
  • Moldova 1 April, update - VAT rate cut on hospitality services will be from 20% to 15% (not 10%)
  • Portugal 31 March, update on February deferred VAT process. VAT payment deferment for smaller taxpayers.
  • Cyprus 31 March, update delays VAT payments until 10 November 2020.
  • Philippines 31 March, has delayed March VAT filings.
  • United States 31 March, from Avalara in the U.S., the latest on states' sales tax measures.
  • UK Jersey 31 March, postpones GST payments March to May.
  • Taiwan 31 March, postpones VAT payments for March to May. 
  • Sri Lanka 31 March, pushes back February and March VAT payments.
  • Bolivia 31 March, reduces Transaction Tax for three months.
  • Sweden 30 March, update confirms new dates for late penalty and interest fine easements on VAT payments for up to one year.
  • Belgium: 30 March, update accelerated VAT credit payments. VAT filings and payment delays on coronavirus crisis concerns.
  • Greece 30 March, update 2019 sales listing delayed. Deferred VAT must be repaid by end of August 2020.
  • Tunisia 30 March, VAT credit accelerations. 
  • Malaysia 30 March, service tax changes.
  • Canada 29 March, Federal GST delays; Quebec delays sales tax return until 30 June; Saskatchewan sales tax postponements; Ontario allows some filing reliefs, but none for HST. Manitoba joins British Columbia in offering delays on provincial sales taxes. The federal government has already suspended audits.
  • Russia 29 March, tax payment deferrals for all small businesses, but not extended to VAT.
  • Uganda 29 March, postpones VAT compliance requirements.
  • Colombia 29 March, delays filings and payments for certain sectors.
  • Guatemala 29 March, allows late VAT returns.
  • Lithuania 28 March, has confirmed VAT payment delays or write-offs of up to one year. 
  • Slovenia 28 March, VAT payment delays on application.
  • New Zealand 27 March, limited help for businesses on Goods and Services Tax.
  • Slovakia 27 March, clarifying already announced different payment and returns delays.
  • Finland 27 March, update an extra three-month VAT extension has been offered with reduced interest charges. Only on application.
  • Nigeria 27 March, is delaying the VAT returns deadline.
  • Hungary 27 March, Hungary has delayed the update of its live invoice reporting schema from 1 April until 1 July 2020. VAT payment delays on application and payment of admin fee.
  • France 27 March, VAT credit repayments will be accelerated. But VAT returns are still due on time.
  • Austria 27 March, annual VAT return deadline extended to 31 August. Austria has already implemented a VAT payment and penalty deferment application scheme.
  • Kenya 26 March, cuts VAT from 16% to 14% 1 April.
  • Uruguay 25 March, provides VAT filing and payments delays.
  • Argentina 25 March, updates tax help for COVID-19.
  • Spain 24 March, Canary Island is postponing VAT returns. Mainland Spain had closed its tax offices from 15 March for face-to-face meetings. There were changes to filing deadlines, too. 
  • Turkey 24 March, offers VAT return and filing delays. Cuts VAT on domestic flights and hotel accommodation.
  • Latvia 24 March offers tax payment delays and speedy VAT credit refunds.
  • Israel 24 March, update on late filings for bimonthly filers.
  • Iceland 24 March, offers delayed VAT payments until 2021. Hotel tax withdrawn until end of 2021.
  • India 24 March, provides delays to GST filings.
  • Estonia 23 March, is to provide a VAT payment holiday until 1 May. But further easements are promised.
  • Ukraine 23 March, will not charge late interest on VAT payments until after May 2020.
  • Malta 23 March, VAT payment holidays for March and April.
  • Switzerland 23 March, offers VAT and customs payment holiday until the end of 2020.
  • Germany 22 March, businesses may apply for VAT payment postponement until 31 Dec 2020.
  • Saudi Arabia 21 March, delays VAT payments by three months.
  • Japan 20 March, update has abandoned temporary Consumption Tax rate reduction from 10% to 5%. It has already delayed filing deadlines and payments by two months until May for individuals and not corporations.
  • Bulgaria no relief on VAT filings deadlines.
  • EU VAT reclaims delays to deadlines across Europe.
  • Moldova VAT rate cut for COVID crisis.
  • Luxembourg has granted speedy VAT credit refunds, and no fines on late filings.
  • Denmark delays on VAT for small and large businesses.
  • Jersey is to allow late Goods and Sales Tax payments.
  • Czech Republic issues limited VAT measures for businesses.
  • Romania introduces accelerated VAT credits.
  • Australia is offering speedy credits on Goods and Services liabilities.
  • 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.
  • Costa Rica has provided a three-month VAT payment deferment for taxpayers from 15 March.
  • Georgia is doubling funding for company VAT credit refunds.
  • Jamaica plans to cut its General Consumption Tax from 16.5% to 15%.
  • China has cut VAT on medical services, catering, and accommodation services, 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.
  • South Korea has cut VAT taxes for small businesses, given tax boosts for consumers replacing their cars early, and provided tax deductions on personal credit card spend.
  • Vietnam is proposing cutting VAT for restaurants, hotels, and transport and tourism companies. It is also considering a five-month delay on VAT payments by businesses.
  • Indonesia has said it will waive 10% consumption taxes on hotels and restaurants in Bali and nine other tourist destinations for the next three months. It will also grant postponements of payments of import VAT for businesses, and offer accelerated VAT credit repayments for manufacturers.
  • Thailand has exempted face masks from import VAT and reduced time waiting for VAT refunds to 15 days.

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 this year won International Tax Review's 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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