Tax waivers for Retail and Services

In connection with the closing of most shops and establishments providing services, the Ministry of Finance has published some tax waivers. Please find a brief presentation of them below.

What taxes do the waivers concern?

Value added tax

Punitive interest incurred over the taxation period of September, October and November 2020 will be waived for selected payers of VAT (for those who make monthly payments), or punitive interest incurred over the third quarter or 2020 (for those who make quarterly payments). Due tax must, however, be paid no later than the end of 2020.

It will also be necessary to submit tax returns for VAT and also VAT control statements by the regular deadlines, as penalties for late submission of these will not be waived.

Income tax for corporate entities and natural persons

Advance payments on income tax due from 15 Oktober 2020 to 15 December 2020 will be waived for the taxpayers specified below.

Road tax

All advance payments on road tax due in 2020 will be waived for the entities concerned.

Who do the waivers apply to?

The aforementioned tax waivers concern entities whose predominating part of income comes from retail sales and the provision of services in establishments that were prohibited by the government from 22 October 2020.

How to request waivers?

A taxable entity proves entitlement to the aforementioned waivers by submitting a notification to the relevant revenue authority, for example by e-mail. A notification is available at the Financial Administration’s website.

Please do not hesitate to contact us if anything is unclear or if you have any further questions.

The WTS Alfery Team