We are here to support your company, which is why we have collected all the information necessary for this so that you know exactly what is happening in the current situation in Europe, how companies that are registered for VAT in the European Union can apply for deferred payment of VAT. Is there any other help from tax authorities for companies from European Union countries during Covid-19.

Below we present all collected information on the payment of VAT in each country (this information was collected through cooperation with tax authorities from these countries:

Austria
All companies can apply for a deferred payment of VAT without charging an interest fee – payment of VAT must be made by 30 September 2020. Penalties for late payment will continue to apply, but they can be waived upon request by explaining to the tax authority how the company was affected by Covid-19. Nevertheless, submission deadlines and penalties for late submissions remain unchanged, therefore refunds must be made on time.

Belgium
The tax authorities have announced deadlines for submitting VAT returns, and for sales lists they change as follows:
– VAT declaration for February postponed to April 6, 2020;
– VAT declaration for March postponed to May 7, 2020;
– first quarter of 2020. Postponed to May 7, 2020;
If there is a requirement to submit an annual sales inventory, it has been deferred until April 30, 2020. Payment of VAT for these periods is also delayed as follows:
– VAT declaration for February postponed to May 20, 2020;
– VAT declaration for March postponed to 20 June 2020
– the first quarter of 2020 postponed to June 20, 2020
If the payment is made on a changed date, no penalties or interest will be imposed.

Bulgaria
No facilities have been announced for submitting VAT declarations or payment extensions, and none are expected.

Czechia
Currently there is no postponement of the date and deadline for submitting VAT returns. However, if the refund is late or payment is delayed, you can apply for the waiver if the company can show that the delay was caused by Covid-19 and its impact on the company.

Croatia
SMEs may apply for a deferred payment of VAT within 3 months, starting from April 2020, or apply for payment in interest-free installments.

Cyprus
The Cypriot tax authority has announced that for most companies, temporary extensions of VAT payments will be introduced. The previous trading condition has been deleted. To benefit from the deferral, VAT declarations must be submitted on time and deferred VAT payments must be made before November 10, 2020. The previously proposed reductions in VAT rates have been withdrawn. Companies excluded from the deferral include companies involved in the retail sale of food, books and newspapers, computers and toys.

Denmark
Temporary monthly suspension of VAT payments for companies with a turnover of more than DKK 50 million. This applies from the March 2020 tax declaration. Until May 25, 2020.

Estonia
Companies are expected to meet the VAT refund deadline on March 20, 2020, however, the tax authority will show flexibility in recovering VAT debts. The Ministry of Finance is preparing for a loan of up to EUR 1 billion to stimulate business in crisis due to the spread of Covid-19 and alleviate the effects of the crisis.

Finland
Businesses can ask you to remove the penalty for late submission. However, they recommend submitting VAT returns as soon as possible.

France
Companies can apply for suspension of tax payments if they provide evidence that Covid-19 is affected. However, it now appears to apply only to direct taxes, but could be extended to VAT in due course.

Germany
The German tax authority has announced that the deadline for submitting VAT declarations or payment dates has not been postponed, but companies can apply for deferred payment if the payment would cause significant difficulties. If payment is made late, it is possible to apply for the lifting of penalties, as long as the company can show that the delay was directly caused by Covid-19 and its impact on the company.

Greece
The Greek Government has announced plans for a four-month VAT exemption period for VAT refund payments on March 30, 2020.

Hungary
The Hungarian tax and customs office has issued a notice of deferred tax payment after the COVID-19 virus has spread. The measures mainly concern natural persons. However, companies may apply for tax deferment (including VAT). But there is an administrative fee of HUF 10,000.
Measures regarding taxes and related penalties and interest include:
– tax deferral;
– schedule repayment step;
– tax free.

Ireland
The companies concerned advised that they continue to file their tax returns on time; for SMEs, suspension of interest on late payment fees for January and February 2020; companies other than SMEs may also ask for support; and critical pharmaceutical products and medicines will receive accurate ‘green routes’.

Italy
The Italian tax authority has announced a number of measures regarding the tax credit for COVID-19 (such as suspension of VAT payment deadlines with payment deadline from March 8, 2020 to May 31, 2020 to June 30, 2020), however, now all the facilities apply some only resident companies.

Latvia
Companies may postpone payment of taxes upon request. The government also decided to facilitate the return of enterprises by requiring the state tax service to return the approved amount of value added tax (VAT) to all taxpayers within 30 days of the deadline for submitting the VAT return, without charging tax until the end of the tax year, with effect from April 1, 2020. In connection with the above, it is also planned to refund the amount of confirmed VAT calculated currently by the end of 2020, in accordance with VAT declarations already submitted for January and February 2020. A change in the VAT rate on payments is possible in 2021, if there are justified grounds.

Lithuania
The Lithuanian government declared a state of emergency in connection with the Covid-19 crisis and authorized companies from the list of approved taxpayers to benefit from automatic relief in deferred VAT (limited scope). Other companies liable for VAT in Lithuania may apply for a deferred tax credit. If the relief applies, companies have up to two months after the end of the state of emergency to pay the VAT liability or to submit an application for alternative arrangements.

Luxemburg
Penalties for late submission of VAT returns have been suspended until further notice. Companies directly concerned by Covid-19 may also apply for deferred payment of VAT online. There is also a procedure for automatic reimbursement of VAT reliefs below EUR 10,000.

Malta
No updates from the government.

Netherlands
The deadlines for submitting VAT have not been changed, but if your business requires deferred payment, you can apply to the tax authority. Longer extensions may be granted together with supporting evidence. The application may be submitted only after assessing the failure to pay VAT due.

Norway
The government has announced new measures, including deferred VAT payments and a reduction in the low VAT rate. You can read our full update on this topic here. Tax offices were closed for direct meetings until further notice.

Norway approved the provisions regarding Covid-19 measures. This includes a delay in payment of VAT from 14 April 2020. To 10 June 2020. They also reduced the further VAT rate; reduced from an initial 12% to 6% (initially proposed 8%). Parliament approved this for a temporary period from April 1, 2020 to October 31, 2020.

Poland
The government confirmed the delay in extending the monthly SAF-T filed for large companies. They postponed the implementation of April 1, 2020. On July 1, 2020, moreover, enterprises that due to coronavirus (Covid-19) will have problems with timely payment of taxes may apply for VAT leave. The tax authorities also hope to make VAT refunds faster.

Portugal
The government has implemented the proposed facilities, including the option of paying VAT in installments without any penalty for late payment or interest.

Romania
The offices are still open for direct meetings but recommend remote contact; the government has published measures to support the business environment, including VAT rebates.

Slovakia
The Slovak government has announced various deferred tax filing deadlines. However, there is no confirmation that any VAT declaration or deferred payment was introduced as a result of Covid-19.

Slovenia
The Slovenian tax authority has not yet announced any facilitation in the submission of VAT or prolongation of payments, however, companies can submit requests for deferred payment of VAT or pay in installments of up to 24 months without charging interest or penalties for late payment via the website.

Spain
The Spanish tax authorities have extended the VAT exemptions applicable as a result of the Covid-19 crisis. Deadline for submitting VAT returns for the first quarter of 2020. For enterprises with a turnover of less than EUR 600,000 in Spain in 2019. It is automatically extended until May 20, 2020. From April 20, 2020, May 20, 2020. Is the deadline for submitting and payment. Unlike the previous deferral pattern, you do not need to apply for an extension. As the application is not required, there is no requirement to have a Spanish bank account that will facilitate the relief of non-resident enterprises.

Sweden
The government will take measures to support enterprises affected financially by late penalties and interest fines on VAT payments for up to one year. The new rules apply from April 7, 2020, but can be applied retroactively from January 1, 2020.

Companies with a reduced turnover may also apply for fewer periods of VAT returns depending on the thresholds, while companies with an annual turnover of less than SEK 3 million can apply for cash based VAT.

Switzerland
The government announced deferment of VAT payments and reduction of interest rates. Companies must continue to submit VAT returns in the normal way and report the VAT due in that period. In Switzerland, the Federal Council announced VAT measures to help companies with cash flow problems due to Covid-19.

Possibility for companies to extend payment periods without paying default interest;
– interest rate reduction to 0% for VAT;
– interest rate reduction to 0% for customs from March 21, 2020 to December 31, 2020.
That the Swiss Free Trade Agreement would be able to pay VAT rebates as soon as possible without using payment dates.
Companies must continue to submit VAT returns in the normal way and report the VAT due in that period.

Great Britain
HMRC has announced that companies that have a deferred duty bill and that have severe financial difficulties as a result of Covid-19 may apply for an extension of the due date on April 15, 2020.

After some confusion as to the scope of the three-month VAT payment leave established by the United Kingdom Government, HMRC provided some welcome clarification regarding the application of the measures.

Finally, companies must continue to make payments due under the VAT system for the small one-stop shop. This is the VAT due to tax authorities in other Member States; that’s why the UK government has no control over these funds.

We will continue to monitor the situation and provide further updates as required.