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moreThe TVL is an allowance for fixed costs for companies that are economically affected by the corona crisis. After an initial compensation period (June to September 2020) for companies in a limited number of industries, the TVL has been extended, increased and made available to nearly all sectors in Q4 2020 and Q1 2021. Please find below an overview of the most important conditions and points of attention of this second period (Q4 2020) and third period (Q1 2021) of the TVL. In doing so, we have taken into account the latest adjustments to the support and recovery package of the Ministry of Economic Affairs and Climate, announced on
9 December 2020.
Features of the TVL subsidy for the second and third period
The main features of the grant are the following:
- The TVL reimburses 50%-70% of the fixed costs percentage of the sector (set at a fixed rate) multiplied by the loss of turnover;
- The maximum amount of TVL from 1 October 2020 is increased to € 90,000 per company per three months. In the first period this was € 50,000 for each company every four months;
- For Q4 2020 and Q1 2021, the sectoral restriction is cancelled and the TVL is available to nearly all sectors.
Main conditions: loss of turnover, fixed costs and number of employees
The most important conditions for eligibility for the grant are as follows:
- At least 30% loss of turnover (subsidy period versus same period in 2019);
- At least € 3,000 fixed costs in three months (used to be € 4,000 in four months);
- The company has up to 250 employees in service (note, in some cases aggregation of employees within a group is applicable).
Special arrangement for the event and catering industry
The subsidy for a company offering a food or beverage service will be increased.
In addition to extra support for the catering industry, an events sector module within the TVL has also been announced for Q4 2020 and Q1 2021. The scheme is aimed at organisers and suppliers of public events, such as fairs, sports events and festivals.
The module is intended for companies that were eligible for and have been granted the TVL 1 but are not eligible for the TVL in Q4 2020 or Q1 2021 due to (branch-bound) low reference turnover in those periods of the year. To make the module available, the scheme must first be notified to the European Commission for approval as state aid.
Application period and submission procedure
The TVL for October up to and including December 2020 can be applied for via the website of the Netherlands Enterprise Agency (RVO). The application period for Q1 2021 is expected to open in the course of February 2021.
More information?
Would you like more information about the second TVL-period? Please contact you trusted RSM consultant or send an email to: [email protected].
Download 'Fixed expenses arrangements increased and extended to include Q1 2021' in pdf.