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

World turns to VAT cuts on coronavirus COVID-19 threat

  • Jan 21, 2021 | 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

  • Taiwan 21 Jan, extending VAT filing and payment deadline to 17 Feb
  • Sweden 19 Jan, VAT bad debt relief on 2020 invoices over 3mths old
  • Israel 13 Jan, Nov and Dec return and payments delayed to 25 Jan
  • Netherlands 9 Jan, further 3-month VAT payment extension to 31 Mar 2021
  • India 7 Jan, extension on annual GST returns to 28 Feb 2021
  • Venezuela 2 Jan, import VAT exemption extended till 30 Apr 2021
  • Germany 1 Jan, standard VAT rate returns to 19%
  • Greece 1 Jan, delays e-invoices and e-books launch to Q2 2021
  • Bolivia 30 Dec, withdraws COVID tax support measures
  • Spain 29 Dec, option to delay tax by small businesses for 6 months
  • Czech Republic 29 Dec, 10% reduced VAT rate prolonged to Aug
  • Philippines 28 Dec, VAT voluntary disclosure extended to Jun 2021

Updates by region:

Europe

  • Sweden 19 Jan, VAT bad debt relief on 2020 invoices over 3mths old
  • Netherlands 9 Jan, further 3-month VAT payment extension to 31 Mar 2021
  • Greece 1 Jan, delays e-invoices and e-books till Q2 2021
  • Spain 29 Dec, option to delay tax by small businesses for 6 months
  • Czech Republic 29 Dec, 10% temporary rate prolonged till Aug 2021
  • Latvia 10 Dec, reextended fast VAT credit payments within 30 days
  • UK 10 Dec, extension for non-EU VAT recovery claims
  • Slovenia 5 Dec, two-year VAT payment plans available
  • Italy 4 Dec, delay Dec VAT payments
  • Germany 4 Dec, VAT reclaims extension; VAT payment holiday into 2021
  • Portugal 2 Dec, 3 or 6 monthly VAT payment schedules for new, small businesses
  • Germany 2 Dec, option to apply for VAT payment holiday into 2021
  • Denmark 30 Nov, repayment of VAT loans delayed from 1 April to 31 Dec 2021
  • Austria 29 Nov, restaurant VAT rate cut extended to Dec 2021
  • Macedonia 29 Nov, cuts hospitality VAT rate from 18% to 12%
  • Moldova 27 Nov, VAT rate cut on hospitality frorm 15% to 12% 2021
  • 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
  • Cyprus 12 Nov, VAT payment for 10 Nov return may be spread over up to 6 months
  • 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
  • Albania 1 Oct, small businesses (14 million leks turnover) exempted from VAT
  • 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
  • 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%
  • Poland 19 May, potential delay to SAF-T to 2021
  • 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.
  • 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

  • Israel 13 Jan, Nov and Dec return and payments delayed to 25 Jan
  • Saudi Arabia 2 Dec, businesses given to 31 Dec to apply for VAT payment delays
  • Oman 12 Oct, confirms implementation of 5% VAT 1 Apr 2021
  • 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

  • Kenya 30 Nov, VAT cut to 14% to be reversed to 16% 31 Dec 2021
  • 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..
  • Botswana 12 April, accelerated VAT credit repayments.
  • Uganda 29 March, postpones VAT compliance requirements.
  • Tunisia 30 March, VAT credit accelerations.

Asia

  • Taiwan 21 Jan, extending VAT filing and payment deadline to 17 Feb
  • India 9 Jan, extension on annual GST returns to 28 Feb 2021
  • Thailand 30 Dec, 8-day exention on e-filing VAT returns
  • Philippines 28 Dec, VAT voluntary disclosure extended to Jun 2021
  • Japan 12 Dec, considering Consumption Tax reduced rate cut to 5%
  • 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.
  • 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
  • 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
  • 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

 
  • Venezuela 2 Jan, import VAT exemption extended till 30 Apr 2021
  • Bolivia 30 Dec, withdraws COVID tax support measures
  • Argentina 2 Dec, delay till end of Feb for mandated withholding VAT
  • Uruguay 3 Nov, hotel services zero-rated; 9% VAT on catering
  • Colombia 26 Oct, hotel and tourism VAT cuts to Dec 2021 proposal
  • Chile 7 Sep, automatic VAT credit refunds for qualifying businesses. delays mandatory e-receipts until 1 Jan 2021
  • Paraguay 28 Aug, 10% VAT for tourism until 30 Jun 2021
  • Brazil 21 Aug, ICMS payment delays till year end
  • Ecuador 10 Jul, extends VAT to foreign providers of digital services
  • Peru 19 May, up to 6 months' delay on VAT payments

Explore more content like this in our Building for COVID-19 recovery hub

Explore more content like this in our Brexit hub


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 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
VATlive newsletter

Sign up for our free newsletter stay up-to-date with the latest tax news.

VAT Voice Webinars


Stay ahead of the curve, sign-up to VAT Voice, our essential monthly round-up of VAT, GST and legislation news