VAT related simplifications regarding the Corona-crisis in CEE

Following current developments around the Corona-crisis, various European countries have introduced VAT related simplifications. The measures shall ensure that taxable persons remain solvent. The simplifications mostly apply to companies economically suffering from the Corona-crisis, but are partially subject to further conditions. We would be happy to inform or assist you in detail on local measures.

Austria

• taxpayers may apply for a deferral of VAT payments without interest assessment in case of liquidity shortage due to the Corona-crisis;
• VAT audits and comparable measures will be postponed;
• deadline for submission of the annual VAT return has been extended;
• deadline for submission of monthly or quarterly VAT returns, as the case may be, has not be extended, but there shall be no fines in case of late filing;
• deadlines for filing appeals and similar legal actions has been extended until 30 April 2020;
• tax relief measures have been also implemented for other taxes (e.g. reduction of prepayment for corporate income tax) and social security contributions.

Bosnia-Herzegovina

• proposed extension of filing date for VAT return from 10th day to the end of the following month.

Croatia

• taxpayers may apply for a deferral of VAT payment under following conditions:
  • previous year supplies do not exceed HRK 7,500,000 (i.e. EUR 1,000,000), excluding VAT;
  • not available to taxpayers applying cash-accounting scheme;
  • actual or estimated decline in revenue;
  • taxpayer substantiates that respective VAT liability is based on outstanding invoices or proves otherwise that his liquidity has been (negatively) affected;
• tax relief measures shall also apply to other taxes (e.g. income tax) and social security contributions.

Czech Republic

• taxpayers may apply for remission of late payment interest and penalties for late submission of VAT returns due to the Corona-crisis;
• relief measures shall also apply to other taxes as well as social and healthcare security contributions.

Hungary

• there are so far no special relief regulations directly related to VAT;
• taxpayers may apply for a deferral or payment in installments of VAT or other ongoing taxes (even without interest) just on the basis of the general rules. Liquidity shortage due to the Corona-crisis may constitute a sufficient reason to be eligible for a relief;
• relief measures currently apply to certain industries only, mainly with the aim to keep personnel. A reduction of advance payments on corporate income tax and local business taxes can be also claimed on the basis of the general rules.

Serbia

• Serbia has not introduced any (VAT nor other tax) simplifications in respect to the Corona-crisis so far.

Slovakia

• the following simplifications have been proposed, but not yet approved with respect to VAT:
  • postponement of VAT audits for taxpayers with an input VAT deduction under certain thresholds;
  • instalments for unpaid VAT for February, March and April 2020 without interest;
  • extension of the VAT filing deadline for 30 days;
  • suspension of Intrastat obligations until 30 September 2020;
  • no sanctions concerning supplementary VAT returns from 1 March to 30 September 2020;
• further simplifications on other taxes and customs have been as well proposed, but not yet approved.

Slovenia

• taxpayers suffering from decreased revenues due to the Corona-crisis can apply for deferred payments or payment in instalments for outstanding VAT amounts, with no interest assessed.