The outbreak of Covid-19 has led to several countries within the EU, including Malta, begin the process of restricting the norms of everyday life. This pandemic has also affected companies which are expected to struggle with their economical activities. National tax authorities have stepped in to help these companies by introducing simplifications, extensions of deadlines and tax deferrals as they aim to mitigate the negative effects of Covid-19. 

In Malta, the government has announced the first economical package with the intention to help companies and self-employed individuals with cash-flow problems. Provisional Tax, VAT, and social-security (national insurance) payments for the months of March 2020 and April 2020 for both self-employers and employers have been postponed. It was also announced that the process for VAT refunds will be accelerated to help companies and self-employed individuals with their financial liquidity.

 

Other EU member states have also taken similar decisions which are all aimed at helping those affected: 

Country

Measures Taken

Belgium

Companies must prove that they are being affected by Covid-19 to apply for a postponement of VAT payments. Fines and Penalties have been suspended for the time being

Poland

There has been a delay to the extension of the SAF-T VAT reporting system and the Government has announced that a VAT payment holiday is to be introduced. 

Spain

VAT returns till the end of May are being allowed a 6-month extension if they meet the requirement set out by the Government. Tax deadlines have been extended and filing deadlines for SMEs and self-employed individuals have also been extended.

France

Tax deadlines are being offered to companies who prove that they are affected by Covid-19, however this has not been extended to VAT payments as yet.

Portugal

Companies who are not able to meet deadline due to financial restrictions will not be fined.

Netherlands

A written form must be submitted for VAT extensions to be given. Fines are not being imposed

Italy

VAT extensions till the end of May are being given to taxpayers however taxpayers who have a turnover higher than 2m have been given an extension till 20th March. 

Germany

The submission of VAT returns is being discussed based on how long the duration of the extension should apply.

The situation is very dynamic, in fact we expect new measures and economic packages to be introduced locally and in the EU, to aid businesses in their Covid- 19 response. 

HOW CAN WE HELP?

We invite you to reach out to your RSM contacts should you wish to discuss the applicability of these measures and the potential Covid-19 Tax & VAT impact on your business. 

Get in touch with  Karen Spiteri Bailey, Partner at RSM via email: [email protected]