VAT Updates

Reinstatement of quarterly reporting periods

The Tax Department issued an announcement earlier this week in relation to the reinstatement of quarterly reporting periods and the payment of VAT for the period ending 31/05/2020.

Reinstatement of quarterly reporting periods

For taxable persons who were requested in April 2020 to submit monthly reporting periods, this change will be terminated from 01/07/2020. Taxable persons who are affected will be notified by the Tax Department of the duration of their next reporting period, with the aim of reinstating their reporting periods to their normal sequence. The notification will be sent by email to the last email address which is recorded in the TAXISNet system.

Payment of VAT or the period ending 31/05/2020

As mentioned in our previous alert, the Tax Department informs that for the VAT return relating to the period ending 31/05/2020 the deadline for submission and payment of the VAT was 10th July 2020. On this basis the VAT liability must be discharged by 10/07/2020 otherwise the submission is deemed to be overdue and submit to 10% additional tax and other charges.

The deferral of payment of VAT applies only to the VAT returns ending on 28/02/2020, 31/03/2020 and 30/04/2020.