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World turns to VAT cuts on coronavirus COVID-19 threat

  • Sep 20, 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

 
  • Greece 20 Sep, six-month extension of reduced VAT rates
  • Hungary 16 Sep, delays to Apr 2021 on Real Time Invoice Reporting
  • Greece 14 Sep, VAT payments delayed to 30 Apr 2021 from 31 Aug 2020
  • Sweden 10 Sep, bad debt relief for VAT sales invoices
  • Argentina 8 Sep, delays implementation of live withholding VAT system SIRE until 1 Dec. Pushes back digital VAT books rollout.
  • Chile 7 Sep, automatic VAT credit refunds for qualifying businesses. delays mandatory e-receipts until 1 Jan 2021
  • Oman 7 Sep, VAT implementation delayed till Jan 2022

Updates by region:

Europe

  • Greece 20 Sep, six-month extension of reduced VAT rates
  • Hungary 16 Sep, delays to Apr 2021 on Real Time Invoice Reporting
  • Sweden 10 Sep, bad debt relief for VAT sales invoices
  • Denmark 3 Sep, postpones Energy Tax until 2023
  • Turkey 1 Sep, rise on transaction tax on cars
  • Finland 31 Aug, scraps plans to update VAT return
  • Iceland 31 Aug, penalties relaxtion on late July and Aug returns payments
  • Portugal 27 Aug, July VAT return delayed to 20 Sep instead of 10 Sep. VAT payment due by 25 Sep
  • Poland 25 Aug, July return delayed. VAT rate cut postponed
  • Italy 10 Aug, VAT liabilities may be delayed for upto 2 years
  • Montenegro 10 Aug, cuts hotel and catering to 7% VAT till Aug 2021
  • Bulgaria 31 Jul, confirms cut to catering, restaurant, e-books and printed book VAT rate to 9% until 31 Dec 2020
  • UK considering 2% online sales tax
  • 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 19 Jul, VAT flat rates adjusted following the UK rate cut on hospitality and hotels
  • Netherlands 15 Jul, new guidance on 3-month defered VAT assessment payments
  • Ireland 11 July, possible Irish VAT rate cut to hospitality
  • 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
  • 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
  • Czech Republic 22 June, Delays EEA VAT cash registers. Accomodation & events VAT cut to 10%
  • 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
  • Spain 25 May, filing deadline suspensions withdrawn 1 June
  • 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.
  • 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
  • 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

  • Canada 31 Aug, BC tax on digital services reintroduced
  • Costa Rica 25 Jul, tourism exempted from VAT until July 2021
  • United States 23 Aug, from Avalara in the U.S., the latest on states' sales tax measures.
  • 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

  • Israel 9 Sep, debate on vat rate cut
  • Oman 7 Sep, VAT implementation delayed till Jan 2022
  • Bahrain 2 Sep, VAT payments from 1 Sept fordeferments taken between Mar and Aug
  • Saudi Arabia 29 Aug, extension for returns and payments to 30 Sep
  • 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

  • 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

  • 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
  • Sri Lanka 8 Jul, VAT returns pushed out to 31 December
  • Malaysia 2 Jul, sales and services tax payment delays and temp rate cuts
  • 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
  • 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.
  • 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.

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

 
  • Argentina 8 Sep, delays implementation of live withholding VAT system SIRE until 1 Dec. Pushes back digital VAT books rollout.
  • 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
  • Colombia 25 Aug, automatic VAT credit repayments till year end
  • 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
  • Uruguay 23 June, May VAT payments delayed e-invoicing rollout delayed
  • Peru 19 May, up to 6 months' delay on VAT payments

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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