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