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

World turns to VAT cuts on coronavirus COVID-19 threat

  • Nov 26, 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. For free updates of this list, sign up to receive Avalara's free VAT newsletter.

Latest updates

Updates by region:

Europe

  • Norway 25 Nov, Reduced VAT rate 6% extended again on passenger transport, cultural, hotels, sports activities 
  • Ireland 25 Nov, cut on VAT Retail Export scheme Irish VAT rate cut to hospitality until Dec 2021
  • Bulgaria 23 Nov, cuts VAT on takeaway food to 9%
  • Turkey 20 Nov, delays Accomodation Tax
  • Hungary 18 Nov, cuts VAT on take-away food to 5%; soft landing to Apr 2021 on Real Time Invoice Reporting
  • Portugal 17 Nov, 10-day filing and payment delays on returns until March 2021
  • Germany 16 Nov, import VAT deferrment delay; VAT reclaims delays
  • Sweden 13 Nov, VAT payment deferment available till end 2021
  • Cyprus 12 Nov, VAT payment for 10 Nov return may be spread over up to 6 months
  • Netherlands 9 Nov, extends 3-month VAT payment deferal scheme till Jan 2021
  • Italy 8 Nov, plan to delay Nov VAT payments in most affected regions
  • Greece 3 Oct, VAT payments delayed till 30 Apr 2021; ebooks and einvoices delayed to Jan 2021
  • Czech Republic 27 Oct, VAT deferals
  • Romania 27 Oct, consultation on 12-month instalment plan VAT payments
  • Iceland 23 Oct, penalties relaxtion on late Sep to Nov VAT payments
  • Slovakia 20 Oct, VAT payments deferred until 1 Feb 2021
  • Spain 18 Oct, proposing rasing VAT on sugary drinks to 21%
  • Albania 1 Oct, small businesses (14 million leks turnover) exempted from VAT
  • UK 24 Sep, extends 5% reduced hospitality VAT till 31 Mar 2021 UK rate cut on hospitality and hotels
  • Denmark 3 Sep, postpones Energy Tax until 2023
  • Finland 31 Aug, scraps plans to update VAT return
  • Poland 25 Aug, July return delayed. VAT rate cut postponed
  • Montenegro 10 Aug, cuts hotel and catering to 7% VAT till Aug 2021
  • EU confirms VAT e-commerce package 1 July 2021
  • Croatia 26 Jul, cuts VAT on food
  • Ireland 23 Jul, VAT cut to 21% until Feb 2021
  • Malta 21 Jul, Mar to Aug VAT payments delayed to May 2021
  • Latvia 10 Jul, speedy VAT credits repayments extended
  • UK 8 Jul, UK Hospitality VAT rate cut from 20% to 5%
  • Ireland 3 Jul, potential tourism VAT cut; interest waiver on June and July VAT payments
  • German transition rules for the temporary VAT cut
  • Lithuania 27 June, 13th Directive reclaims delay. Has confirmed VAT payment delays or write-offs of up to one year. 
  • 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.
  • Macedonia 25 May, delays VAT returns
  • 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.
  • EU proposes delaying e-commerce VAT package to 1 July 2021
  • 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.
  • 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.
  • 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.
  • 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
  • Georgia is doubling funding for company VAT credit refunds.

North and Central America

  • United States 20 Nov, from Avalara in the U.S., the latest on states' sales tax measures.
  • Canada 28 Sep, BC PST refunds
  • Mexico 28 Sep, VAT credits refunded in 15 days instead of 40 days
  • Costa Rica 25 Jul, tourism exempted from VAT until July 2021
  • 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

  • Oman 12 Oct, confirms impelementation of 5% VAT 1 Apr 2021
  • Saudi Arabia 6 Oct, exempts property sales from VAT; VAT returns and payment deadline shift till year end
  • Israel 2 Oct, extended deadline on input VAT deductions
  • Oman 7 Sep, VAT implementation delayed till Jan 2022
  • Bahrain 2 Sep, VAT payments from 1 Sept fordeferments taken between Mar and Aug
  • 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.

Africa

  • Nigeria 12 Nov, is delaying the VAT returns deadline.
  • South Africa 12 Nov, accelerated VAT credit refunds for small businesses
  • Zimbabwe 2 Nov, zero-rates tourism
  • Egypt 15 May, 3-month VAT payment holiday for tourism sector
  • 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.

Asia

  • Malaysia 24 Nov, considering reintroduction of GST
  • Sri Lanka 23 Nov, cut to import VAT rate
  • Vietnam 9 Nov, VAT payment delays; e-invoicing has been postponed.
  • India 27 Oct, extension on annual GST returns
  • Philippines 20 Oct, VAT amnesty on 2018/19 extended to 31 Dec 20
  • Cambodia 2 Oct, delays mandatory e-filing of VAT returns till 1 Jan 2021
  • Singapore 31 Aug, confirms GST will not rise as planned in 2021
  • Thailand 28 Aug, delays VAT hike to 10%
  • Philippines 3 Aug, 1-month extension on digital tax reporting
  • South Korea 31 Jul, proposes hotel VAT exemption extension to 31 Dec 2022
  • 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
  • China 23 May, VAT easements extended to 31 Dec 2020
  • Taiwan 19 May, speedy VAT credits available
  • Japan 16 April, businesses may apply for Consumption Tax exempt status. One-year Consumption Tax payment delays on application.
  • Kyrgyzstan 13 April, delays in VAT cash registers and e-invoicing.

Oceania

  • Fiji 21 Jul, VAT Monitoring System deferred to 2022. Service tax reduced to zero.
  • 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

 
  • Uruguay 3 Nov, hotel services zero-rated; 9% VAT on catering
  • Colombia 26 Oct, hotel and tourism VAT cuts to Dec 2021 proposal
  • Argentina 17 Sep, issues VAT vouchers to support tourism sector
  • Chile 7 Sep, automatic VAT credit refunds for qualifying businesses. delays mandatory e-receipts until 1 Jan 2021
  • Venezuela 2 Sep, VAT payments switched to bi-weekly for small businesses until year end.
  • Paraguay 28 Aug, 10% VAT for tourism until 30 Jun 2021
  • Brazil 21 Aug, ICMS payment delays till year end
  • Bolivia 7 Aug, small and mid-sized businesses cash-based VAT option
  • Ecuador 10 Jul, extends VAT to foreign providers of digital services
  • Peru 19 May, up to 6 months' delay on VAT payments

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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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