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This summary is updated to: 14 May 17 June 2020.
Given the current dire situation of the economy, many retailers are struggling to meet the tax obligations imposed on them by distance selling regulations of other countries. Indeed, retailers who are registered for VAT/Sales Tax/GST in foreign countries must meet overseas filing/payment deadlines (alongside their home-country requirements, of course).
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The Tax Authorities of Belgium have rescheduled the next deadlines to submit VAT returns:
February: the The deadline for the monthly VAT return has been postponed to 6 April 2020;March: the deadline for the monthly the filing of the April VAT return has been postponed to 7 May 2020;
Quarter 1-2020: the deadline for the quarterly VAT return has been postponed to 7 May 2020.
Deadlines for VAT payments concerning these periods have also been postponed:
February: VAT payments for February have been postponed to 20 May 2020;
March: VAT payments for March have been postponed to 20 June 2020;
First Quarter 2020: VAT payments for Q1 have been postponed to 20 June 5 June 2020. The deadline for payment has been postponed to 20 July 2020.
There is a specific form that retailers can fill out and submit to the Belgium tax authorities in order to apply for further VAT deferrals or to avoid penalties/interest in case of failure to meet deadlines. Please write to info@taxmen.eu to receive a PDF copy of the form.
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Please read carefully the instructions on the official site of the French Tax Authorities:
https://www.impots.gouv.fr/portail/coronavirus-covid-19-le-point-sur-la-situation
Germany
Germany has exceptionally reduced the standard VAT rate from 19% to 16% and the reduced rate from 7% to 5% for sales made between 1 Jul 2020 and 31 Dec 2020.
Retailers may also apply for a deferral of VAT payments up to the end of 2020. In exceptional cases, the term can be extended to cover part of 2021. There is a specific form available. You can write to info@taxmen.eu to receive a copy of the form. We are aware that Finanzamt has paid back to foreign e-commerce some VAT payments made before the application was approved.
Greece
There is a special postponement applying for VAT obligations until 31 August 2020 (without any surcharge) for payable amounts regarding March and April, but only for specific activity codes (for instance, distance sales of clothing, etc). There is a technical issue which unfortunately excludes foreign companies having direct registration in Greece for VAT purposes from taking advantage of announced measures for COVID-19. In order to qualify for the VAT break, all concerned taxpayers must be registered to a special system. The system requests (among other information) the Greek tax number of the fiscal representative. Without this information, applications cannot be submitted. Since EU companies do not have the obligation to use a Greek fiscal representative, they seem to be excluded.
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Retailers with a yearly turnover not exceeding 2 million euros will be waived from carrying out any VAT payment in the period ranging between 8 March 2020 and 31 May 2020. Such payments will have to be carried out by 30 June 16 September 2020. Filing requirements are suspended up to 31 May 2020. In spite of the ambiguous wording of the law, it appears the Italian tax authorities have recently clarified that these deferrals are open to retailers established outside Italy.
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Penalties for late penalties will be cancelled but returns must be filed on time. After filing the return, retailers may write a letter to the Dutch Tax Authorities to ask for a 3-month VAT payment deferral due to problems with the coronavirus outbreak up to 30 September 2020. The deferral should be granted automatically. A lengthier break can be granted, provided that the retailers produce evidence of the damage suffered because of the current healthcare crisis.
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Taxpayers can apply for VAT payment by instalment or for a payment deferral. The introduction of the new JPKV reporting (integrated VAT return and SAF-T file) system has been postponed to 1 Jul 2020.
Romania
New measures in favour of businesses affected by the COVID-19 crisis are expected soonRomania has halted most VAT audits and accelerated the process for VAT repayments.
Slovenia
Retailers may apply for a tax deferral lasting up to two years or pay VAT liabilities by 24 monthly instalments. The application for VAT payment deferral or VAT payment by instalments can be submitted using the e-Tax system or, exceptionally, via e-mail directly to the Slovenian Tax Authorities by using a specific form. You can write to info@taxmen.eu to receive a copy of the form.
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Sweden will grant a VAT holiday. The new rules will be are in force from 7 April 2020. In case of retailers strongly affected by COVID-19, the maximum accessible VAT deferral will be of up to 1 year.
United Kingdom
HMRC is deferring the next quarter of VAT payments. This means that no business will pay any VAT from 20 March 2020 until the end of June 2020; and will have until the end of the financial year 2020 to 2021 to repay those bills. VAT refunds and reclaims will be paid by the government as normal. Taxpayers using Direct Debit facilities should cancel them if they intend to enjoy the VAT holiday. The implementation of Phase 2 of Making Tax Digital has also been postponed by 12 months to 2021.
The VAT payment deferral period ends on 30 June 2020. This means that merchants will need to:
Set-up cancelled direct debits in enough time for HMRC to take payment;
Submit VAT returns as normal, and on time;
Pay the VAT in full on payments due after 30 June.
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Disclaimer
We strongly advise to contact Taxmen.eu (info@taxmen.eu) or the local tax authorities for additional information. This overview does not aim to embody proper and complete tax advice, but only a mere indication of where retailers may find complete tax information.
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