Very soon after the official announcement of the virus COVID 19, it was clear that its consequences, in addition to the medical ones, would greatly affect the economies of all countries in the world. The rapid spread of the infection around the world has led to quarantines of various forms and levels as well as a reduction and very often a complete cessation of production.
The immediate consequence of reduced production is a drop in collected taxes and an increase in the number of unemployed. Taxes are certainly the biggest input to the budgets of both the state and local areas. Employers have found themselves in a situation where they cannot pay salaries nor taxes.
The first and most frequently mentioned words related to the tax policy of each country in the previous period are “DELAY” and “MEASURES.”
- up to X months’ delay on VAT payments
- extending VAT returns and payments to month X
- delaying VAT returns for small businesses
- providing VAT payment break till end of month X for small enterprises.
- postponements on returns.
- relief for small VAT payers. Limited VAT reliefs
- VAT credit refunds and suspension of penalties.
- providing VAT filing and payments delays
- reporting period changes or payment delays.
- exempting small taxpayers from VAT
- delaying VAT filings by XX days
- VAT rate cut for COVID crisis
- VAT rate cut on hospitality services will be from X% to Y%
- Discounts on VAT payments
- increasing VAT credit limit.
How Covid 19 Influenced the Fiscalization Process
Countries where fiscalization is ongoing are continuing the process, just like the Czech Republic. It is not legally possible to postpone the start of the third and fourth wave of electronic sales records (EET) effective from May 1st. As a temporary measure, the Financial and Customs Administration will not enforce or inspect EET for the duration of a three month “tolerance period” from May 1st and will fulfill only an advisory function. Businesses, whether directly affected by Coronavirus or not, will not be sanctioned during this period if they have not been able to prepare in time for registration.
In other countries where the process was supposed to start in the period affected by COVID 19, the process was postponed.
Italy: The update of technical requirements on “Real time e-invoice live invoice reporting” (SDL) commencing on 1 October 2020, will not be enforced until 31 December 2020.
India: Due to Covid the GST council voted on several measures:
Delaying the first mandatory go-live of the e-invoicing reform with six months, from 1 April 2020 until 1 October 2020.
Delaying the obligation for B2C invoices (issued by the largest taxpayers in India, with a threshold above Rs.500 Crore) to include a QR code, from 1 April 2020 until 1 October 2020
Poland: The deadline for implementing the new JPK (Standard audit file for TAX – SAF) for large companies has been moved from April 1 to July 1 this year. For other taxpayers, the change is expected to come into force on July 1.
As far as the old cash registers are concerned, old devices (with electronic or paper copies) will be able to be used until the end of 2020 (and not as it was originally intended – until June 30 this year).