Until 30 September 2021, a reduced VAT rate of 6% will apply on restaurant and catering services in Belgium. The measure will take effect as soon as the restaurant and pubs may open again.
Not only the food and non-alcoholic beverages, but also the alcoholic beverages, will benefit the VAT reduction.
Because of the coronacrisis the Belgian tax authorities granted several deferrals for the VAT obligations (return, intracommunity sales listing, annual sales listing, payment of VAT).
The government has announced that as of the transactions of May 2020, no deferrals will be granted.
This means that at latest 20th June 2020:
the VAT return for the transactions of May 2020 must be filed;
the intracommunity sales listing for the transactions of May 2020 must be filed;
the payment of the VAT resulting from the transactions of May 2020 must be paid.
Taxpayers filing monthly VAT returns that are allowed to get monthly VAT-refunds (starters and permit holders), need to file their VAT return for May 2020 also at latest 20th June 2020, if not the reimbursement of the VAT credit will be delayed.
Taxpayers that have terminated their VAT activities after 30th April 2020 need to file their last annual sales listing within three months counting from the date the VAT-activivities were terminated.
When VAT taxpayers regularly import goods from outside the EU in Belgium, they can request a permit (ET 14.000) allowing them to defer the payment of import VAT to their Belgian monthly or quarterly VAT return. In that same return they can report the deductible VAT. So if the import VAT is fully deductible, this permit eliminates the pre-financing of the import VAT.
Due to the current situation with the spread of COVID 19, the Belgian VAT authorities have decided that all forms relating to this permit ET 14.000 (e.g. application and termination) have to be mailed on the following address: et14000@minfin.fed.beFOD Finance, news 24 March 2020
During the COVID-19 crisis, employees are being asked in many countries to work from home. That would mean that paper invoices can not longer be processed as the invoices are mailed to the address of a company while employees dealing with these invoices are not at the office. To avoid invoices are getting booked, paid and reported for VAT purposes, it may be interesting to consider the issuance of invoices in pdf format with an electronic signature and sent them via e-mail to your customers. This should avoid any late reporting and payment of invoices.
The applicable article in the VAT Directive 2006/112/EC is art. 233, 2.
Article 233
1.
The authenticity of the origin, the integrity of the content and the legibility of an invoice, whether on paper or in electronic form, shall be ensured from the point in time of issue until the end of the period for storage of the invoice.
Each taxable person shall determine the way to ensure the authenticity of the origin, the integrity of the content and the legibility of the invoice. This may be achieved by any business controls which create a reliable audit trail between an invoice and a supply of goods or services.
“Authenticity of the origin” means the assurance of the identity of the supplier or the issuer of the invoice.
“Integrity of the content” means that the content required according to this Directive has not been altered.
2.
(a) Other than by way of the type of business controls described in paragraph 1, the following are examples of technologies that ensure the authenticity of the origin and the integrity of the content of an electronic invoice: (a) an advanced electronic signature within the meaning of point (2) of Article 2 of Directive 1999/93/EC of the European Parliament and of the Council of 13
December 1999 on a Community framework for electronic signatures, based on a qualified certificate and created by a secure signature creation device, within the meaning of points (6) and (10) of Article 2 of Directive 1999/93/EC;
(b) Electronic data interchange (EDI), as defined in Article 2 of Annex 1 to Commission Recommendation 1994/820/EC of 19 October 1994 relating to the legal aspects of electronic data interchange, where the agreement relating to the exchange provides for the use of procedures guaranteeing the authenticity of the origin and integrity of the data.
Due to the problems from the spreading of the coronavirus, the Belgian tax authorities have foreseen that taxpayers can request the following VAT measures:
payment facilities;
waiver of late payment interest;
waiver of penalties for non or late payment of VAT.
Today the tax authorities announced the following additional VAT measures regarding the basic VAT obligations.
Periodical VAT return and intracommunity sales listing
return/listing of February 2020, filing by 20th March 2020: extended until 6th April 2020;
return/listing of March 2020, filing by 20th April 2020: extended until 7th May 2020;
return/listing of first quarter 2020, filing by 20th April 2020: extended until 7th May 2020.
Monthly refund of VAT credit
Starters or permit holders for a monthly payment of VAT credits that want their VAT credit refunded on a monthly basis need to file their periodical VAT return at latest the 24th day (instead of the 20th) of the month following the tax period (e.g. VAT return of February 2020 needs to be filed at latest 24th March 2020).
VAT payment
The tax authorities grant an automatic delay of the deadline for VAT payments of two months (no penalties or late payment interest due).
VAT return of February 2020, to be paid by the 20th March 2020: extended until 20th May 2020;
VAT return of March 2020, to be paid by the 20th April 2020: extended until 20th June 2020;
VAT return of first quarter 2020, to be paid by the 20th April 2020: extended until 20th June 2020.
Annual sales listing of taxable customers
The annual sales listing for supplies to Belgian VAT registered customers in 2019 needs to be filed at latest 30th April 2020 (instead of 30th March 2020);
For taxpayers that seize their VAT activities this sales listing needs to be filed at latest at the end of the fourth month following the month in which the VAT activities were seized.
Extension of filing deadlines for indirect taxes such as turnover tax from March 16, 2020 until March 20, 2020.
Bolivia
Introduction of temporary import exemption for supplies of medicins, medical devices, equipment, reagents and fever detectors. The exemption will apply for all import taxes and will be applicable until 31 December 2020.
Colombia
VAT payment delays will be provided for the first 2 quarters of 2020.
Payment delays are provided for taxpayers (hoteling services, passenger air travel services, cafés and restaurants, travel agencies,…).
VAT payments are extended to June 30, 2020 (instead of the end of Mey, 2020).
VAT rates are reduced to 0% for certain medical equipment.
Costa Rica
VAT payment deferment for taxpayers for a period of 3 months
Curacao
Deployment of Soldarity Package, including individual payment plans upon request, waiver of late tax payment fines, exemption from turnover tax in certain sectors, zero-rate for import duties and turnover tax in hygiene products and cleaning products.
Dominican Republic
Launch of individual payment arrangements for VAT due for February 2020. The payment and filing dedline is extended to March 30, 2020.
Ecuador
The filing and payment terms for fulfilling tax compliance olbligations will temporarily be extended.
Guatemala
VAT filing delays for the February return until April 15, 2020.
Jamaica
Launch of Fiscal Stimulus Package, including the reduction of General Consumption Tax from 16.5% tot 15%.
Peru
New filing deadlines for the electronic accounting books and records.
Relaxing the VAT payment and filing deadlines
Puerto Rico
Introduction of temporarily Sales tax exemption for supplies of essential products (such as disinfectants, facial masks, gloves, etc.)
Africa
Canary Islands
Extension of the filing deadline for the Q1 General Indirect Taxes return to June 1, 2020.
Ethiopia
Exemption from import duties and other taxes for materials and equipment necessary for the prevention and containment of the Corona virus.
VAT refunds will be restored more quickly.
Kenya
VAT refund releases to assist businesses to manage cash flows.
Reduction of the VAT rate from 16% tot 14% effective April 1, 2020.
Mauritius
Zero-rate for hand sanitizers and protective masks, applying as from March 24, 2020.
Nigeria
Launch of VAT filing deadline extensions.
Suspension of import duties from March 1 until December 31, 2020 for medical equipment, medicines and other personal material necessary for protection against the Corona virus.
South Africa
Administrative relief for exporters to substantiate the application of zero-rate for exportation within a certain timeframe (extended by 3 months).
Import VAT exemption for essential goods
Tunesia
For affected businesses: suspension of late payment penalties and interest from April 1 until June 30, 2020.
Launch of more flexible VAT refund process.
VAT exemption for companies distributing medicines at retail and wholesale stages.
Sri Lanka
VAT payment deadlines will be extended to April 30, 2020.
Asia-Pacific
Australia
Release of an “Economic Stimulus Package”, including deferment of tax payments for up to 4 months as well as remission of late payment penalties
China
Temporary VAT cut on medical services, catering and accommodation services, certain personal services such as hairdressing, laundry etc., as well as public transportation services and courier delivery services for essential supplies.
VAT refunds relating to the production of key epidemic prevention materials, such as face masks.
India
Postponement of a number of GST obligations, such as the filing of GST returns until the end of June 2020.
The implementation of the planned GST rise on a number of basic products will be delayed.
The GST filing deadlines will be extended for the returns regarding February, March and April 2020 (becoming March, April and May 2020).
Indonesia
Tax cuts for hotels and restaurants in Bali.
Postponement of import VAT payments for companies.
Speeding up VAT refund requests.
Israel
VAT filing and payment deferments for February 2020.
Japan
Delay of filing deadlines and payments by 1 month until April 2020
Temporary decrease of the Consumption Tax rate from 10% to 5%.
Jordan
Suspension of sales tax collection until the moment the goods are sold (applying to all imports and local supplies of food, medecine and health related goods).
Malaysia
Exemption of accommodation services from service tax.
Review of the conditions for the purchase of duty-free goods by persons entering Malaysia.
Exemption of sales tax and import duty on the import and purchase of equipment and machinery for port operators.
Expansion of the VAT activities in the Licensed Manufacturing Warehouses and Free Industrial Zones.
Face masks will be exempted from import duties and sales tax from March 23, 2020.
New Zealand
Companies affected by the Corona outbreak can request individual payment plans as well as remission of late payment penalties and interest.
Pakistan
Sales tax exemption for the import and subsequent supply of medical and testing equipment (initally for a period of 3 months).
Philippines
Introduction of tax relief measures for taxpayers having trouble preparing and filing VAT and other returns in due time.
Russia
Tax payment deferral for companies with activities in the tourism an air transportation sectors.
Zero-rating import duties applicable to certain significant goods.
Singapore
The 7% GST rate will remain unchanged in 2020 and 2021.
VAT filing and payment deadlines will be extended for taxpayers demonstrating to experience trouble fulfilling periodical compliance obligations.
Thailand
Import VAT exemption for face masks.
VAT refund processes will be accelerated for VAT taxable persons participating in the ‘good exporter’ program.
Turkey
Reduction of the VAT rate on domestic airline flights to 1% instead of 18%.
Temporarily zero-rate hotel accommodation and services.
The VAT rate on domestic airline transportation for passenger transport will be decreased to 1% instead of 18% from April 1, 2020 until June 30, 2020.
Extension of VAT filing deadlines for taxpayers whose main field of activity is affected directly by the Corona outbreak and operating in certain sectors.
Extension of VAT filing and payment deadlines as follows: February 2020 return: April 24, 2020 instead of March 26, 2020.
Vietnam
Extension of VAT payments with 5 months for businesses affected by the Corona outbreak.
VAT cut for restaurants, hotels and transport tourism companies.
Europe
Austria
Deferral of VAT payment.
Remission of late payment interest and penalties.
The deadline for filing the annual VAT return will be extended to August 31, 2020.
Belgium
Deferral of VAT payment.
Remission of late payment penalties
Postponement for filing and paying of periodical VAT returns, European Sales Listings and Annual Sales Listings.
Under certain circumstances no VAT will be applied on donations of certain goods made by taxpayers to healthcare institutions experiencing shortages of equipment in the fight against the Corona virus.
Bosnia and Herzegovina
Payment deferments will be allowed for taxes in the course of the Corona pandemic.
Bulgaria
Late payment penalties and interest could be waived (to be confirmed).
Certain administrative procedures could be temporarily suspended (to be confirmed).
Payment and filing delays only for direct tax purposes.
Croatia
Companies can apply for VAT payment delays for a period of 3 months, possibly to be extended.
Cyprus
Certain VAT rates will be changed:
Standard rate: from 19% to 17% during 2 months until May 2020.
Reduced rate: from 9% to 7% during 3.5 months until the end of June 2020.
VAT payment deferments.
Under certain conditions, no late payment penalties or interest will be imposed with regards to the returns for February (due April 10, 2020), March (due May 10, 2020) and April (due June 10, 2020).
Czech Republic
VAT payment deferments.
Advances for VAT deduction.
Different procedure of remitting interest.
Denmark
Deferral of VAT payment by 30 days for the monthly returns of March, April and May 2020.
Estonia
Deferral of tax payments for up to 18 months
Cancellation of late payment interest for the period of March 1 until May 1, 2020.
Finland
Possibility to request remission of late payment penalties or individual payment plans.
No VAT payment deferments.
France
No measures relating to VAT.
Germany
Possibility to apply for delayed VAT payment as from 13 March 2020.
Greece
Under certain conditions, affected businesses can request VAT payment delays.
Temporary rate cut (from 24% to 6%) for a number of essential products, such as hygienic masks, gloves, soap, ethyl alcohol, etc. (to be applied until December 31, 2020).
VAT exemption relating to the supply of goods and/or provision of services to the state in the form of donations of movable and immovable property for charitable purposes.
Iceland
VAT refunds for construction projects up to 100% instead of 60% and extending the scope of the VAT refund until the end of 2020.
Tax payment delays until 2021 for companies demonstrating to be suffering from the Corona outbreak.
Ireland
Late payment penalties and interest are likely to be suspended.
Isle of Man
VAT payment delays are granted for the period between March 23 and June 30, 2020.
Businesses can delay the payments for hits period until March 31, 2021.
VAT returns still need to be filed in due time.
Italy
Extension of tax payment deadlines.
Jersey
Deferment of GST payments.
Kosovo
Deferment of VAT filing deadlines (from March 31 to April 30, 2020).
Latvia
Taxpayers with activities in certain sectors will be able to pay overdue taxes following a special payment plan or to request payment deferrals for up to 3 years.
VAT refund requests will be processed more quickly.
Lithuania
VAT payment suspensions for companies (to be confirmed).
Luxembourg
Remission of penalties for late filing of VAT returns.
Malta
Temporary VAT payment relief for companies.
Speeding up processing of VAT refund requests.
Moldova
Reduced VAT rate of 15% instead of 20% for services and food supplied by entities providing hotel and restaurant services, effective May 1, 2020 (to be confirmed).
Monaco
Deferment of tax payments up to 2 months.
Netherlands
Deferral of VAT payment upon formal request.
Remission of late payment penalties.
Norway
Reduced VAT rate will be temporarily lowered to 8% instead of 12% with effect from April 1, 2020, applying for
The supply of passengers transport and related services;
Public broadcasting companies;
Access to cinemas, sports events, amusement parks and museums;
Accommodation in hotels, the letting of cabins and holiday apartments by hotels and camping businesses.
Further reduction of the reduced rate from 8% to 7% for industries including tourism and certain sports activities (to be confirmed).
Poland
Delay of the implementation of the new SAF-T/JPK forms until at least July 1, 2020.
Until June 30, 2020 the current provisions of the VAT Act and its implementing rules regarding VAT rates will continue to apply.
Introduction of a temporary zero-rate for very specific domestic supplies of goods necessary to combat the Corona virus.
Portugal
Waiving of late payment penalties and interest.
VAT returns still need to be filed in a timely manner.
The implementation of certain VAT rules may be delayed.
Romania
VAT refund processes will be processed more quickly.
VAT filing obligations are likely to be postponed.
A special VAT reverse charge mechanism will be applied for import VAT of COVID-19 test kits, protective equipment and disinfectants, medical equipment and medicines for treating infected.
San Marino
Suspension of payment deadlines, as well as related sanctions.
Slovakia
Extension of the VAT filing and payment deadlines.
Remission from late payment penalties and interest.
Spain
Temporary tax payment deferments.
Sweden
Postponement of tax payments.
Remission of VAT payments for customer losses.
Switzerland
VAT payment deferments without imposing late payment interest for the rest of the year.
Ukraine
Remission of penalties for violation of tax legislation for the period between March 1 and March 31, 2020.
Exemption from import duties and VAT on medicines or medical devices purchased to prevent or combat the Corona virus.
United Kingdom
Introduction of individual payment plans.
Remission of late payment penalties an interest.
Deferment of VAT payments.
Middle East
Saudi Arabia
Deferment of VAT filing and payment deadlines for a period of 3 months, starting March 20, 2020.
UAE
Refund on customs fees imposed on imported products sold locally.
Cancellation of the bank guarantee or cash required to undertake customs clearance activity.
