COVID-19 virus is taking its toll on the world, especially humans. It is affecting all the areas of the economy and market. The businesses, employment, jobs, livelihood and so on are badly hit with no hope of speedy recovery in sight. The impact of COVID-19 is substantial owing to so many people working from home with the blanket ban on travel and transportation all across the planet. There is a ray of hope that several governments of the world are exempting or deferring taxes and duties to provide relief to people and the economy. These measures are expected to soothe the strained economies of the world on which billions depend.
Deferment of VAT
In the European countries, steps have been taken in line with suggestions made by EU commission. It has suggested the countries should provide tax holidays to the beleaguered economies and the people. The deferment of payments of taxes is going on. They will remain in force till the clouds are cleared after the virus goes away. The deferment will continue for several months. Countries, apart from EU, like Colombia, Australia, Japan, Israel, Costa Rica, Canada, UK, USA, India, Thailand, etc. have joined the action against the threat of the pandemic.
Removal of VAT on Hotels and Tourism
Hotels and tourism sector are among the worst hit by the spread of the virus. There is no movement of people, so there is no need for travels and the hotels are without a single occupancy. Keeping this in view, many countries are removing VAT from the expenses of these sectors. This is going to bring solace to these industries but it is not enough keeping in perspective the total ban on international travels.
In some countries, the stress on the operators and businesses is taken off through the measures of tax cuts on goods and services. In Norway, VAT on public transport, cinema and sporting events have been eased considerably slashing the taxes down to 8% from 12%. China also has cut taxes on entertainment, medical sector, catering services, accommodation, transport for an emergency, etc.
These measures have promised to take away the pain and hardship to a certain extent, and the signs are positive. Many businesses are quite apprehensive about the future but the measures taken by the governments of the world are going to reduce the negative impact of the virus-affected humanity.
Australia has taken steps towards nullifying VAT payments and penalty deferment for the sectors which are affected by the COVID-19. Belgium has followed suit in providing relief towards VAT payments. The deferment is till 30-June. Canada has decided to provide federal tax relief from its own fund. China has provided relief in the area of medical services. It has also brought absolute relief in the area of public transport. The country is providing relief to small businesses in full measure. Colombia is going to provide delayed VAT payment for at least one quarter. Costa Rica and Czech Republic also have issued TAX relief measures to ease the pressure on the economy.
Denmark has postponed payments deadline for VAT for some companies. The step will be in force for three months. Finland has come up with an offer of an application procedure for exempting late payment charges. France has braced itself up for VAT credit refund. Georgia also is taking positive steps to tide over the crisis. Germany, Greece and India have offered delayed filing of returns and deferment of payments. Indonesia too has waived its consumption taxes on hotels and restaurants. For VAT registration and return filing in the UAE, GCC Filings will be a great option. You can also avail of their accounting, auditing and company incorporation services in order to keep yourself safe and worry-free.