SWITZERLAND: COVID-19 VAT IMPLICATIONS

Apr 3, 2020 | COVID-19

SWITZERLAND – Update 20th May

COVID-19: Extensions to payment periods for VAT, waiver of interest

Various tax measures are included in the Swiss government’s package to cushion the financial impact of the Covid – 19 crisis. These include:

  • Extensions to payment periods for VAT, customs duties, special excise taxes and incentive taxes
  • Waiver of interest on arrears (interest rate 0.0% in the period of 20 March 2020 to 31 December 2020)

 

Source Credit – KPMG

 

SWITZERLAND – Update 17th April

The Government announced VAT payment deferrals and interest rate reductions. Businesses must still submit VAT returns as normal and report the VAT due in the period.

 

Source Credit – Accordance VAT

 

SWITZERLAND – Update 31st March

  • At federal level, companies have been given the opportunity to extend the payment deadline for direct federal tax without incurring interest on arrears (the advance payment for direct federal tax in 2019 would be due on 31 March 2020). This means that from 1 March 2020 until 31 December 2020 the default interest rate for direct federal tax will be set at 0%.
  • The same applies to Swiss value added tax, customs duties, special excise taxes and incentive taxes. No interest on arrears will be charged in the period from 20 March 2020 to 31 December 2020.
  • Withholding tax and stamp duties, however, are excluded from this waiver of interest on arrears.
  • At cantonal level, almost all of the 26 cantons have so far adopted various tax measures. These include: o interest-bearing tax deferrals or accommodating tax deferral requests (cantons of Basel-City, Schwyz, St. Gallen, Ticino, Zug and Zurich; in planning: canton of Solothurn) and o the postponement of the deadline for submitting tax returns (both companies and individuals: Cantons of Basel-Stadt, BaselLandschaft and Ticino; only for natural persons: cantons of Solothurn, St. Gallen, Valais and Zurich)

Source Link here

 

AUSTRIA – Update 31st March

  • Austria extend the due date to 31st August 2020 for annual VAT returns
  • Business’s that are able to show significant disruption relating to the virus outbreak may be eligible to postpone VAT audits

Source Link here