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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.”

Measures include:

• 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

“Flanders Today” about upcoming fiscalization in Belgium.

Chicago Tribune: More than one-fourth of Illinois gas station operators have underreported the amount of fuel they sell to the public, allowing them to pocket millions of dollars in sales tax owed to the state.

La Stampa explores the time-honored (and cutting-edge) tricks that some Italian merchants use to duck requirements that all purchases are registered in official sales receipts

CT News Junkie: CT DOR will be drafting legislation to outlaw zappers.

Peninsula: HMRC have issued a press release announcing that 30 new taskforces to crack down on tax dodgers will be launched in 2012/13.

AP Business Writer: The Organization for Economic Cooperation and Development, which developed the agreement with the Council of Europe, has pointed to estimates that the United States loses $100 billion a year and Greece $30 billion to tax evasion.