The State Secretary for Finance has adopted a number of additional tax measures as part of the efforts to combat the effects of the coronavirus crisis. These measures are set out in the Decree on emergency measures relating to the coronavirus crisis.
The decision applies retroactively up to and including 12 March 2020 (for the measures relating to recovery interest, up to 23 March 2020, and for the measures relating to energy tax – not described below – up to 1 April 2020).
This article is currently being updated. PLEASE NOTE: not all sections contain the latest information yet.
Exemption from payment at the emergency helpdesk
The payment of €4,000 that business owners receive from the emergency helpdesk (TOGS) and the payment of (up to) €50,000 under the scheme allowance for fixed costs (TVL) form part of the taxable trading profit.
The decision confirms that these payments are exempt from tax. A statutory exemption to this effect has been included in the draft legislation for the 2021 tax package.
Providing medical staff and resources
From 16 March to 31 December 2020 inclusive, the supply of healthcare staff will remain exempt from VAT. This applies regardless of who the supplier is. The measure has no impact on the supplier’s right to deduct VAT.
Conditions:
- the hirer must be a healthcare organisation or institution that applies the VAT exemption;
- the lender states on the invoice that the approval is being used and records the details relating to the approval in its records;
- The temporary employment agency may only charge the gross labour costs, plus, where applicable, an expense allowance of up to 5% (the temporary employment arrangement must not be intended to generate or result in a profit).
Free medical aids
For the free No VAT is payable on the supply of medical devices to healthcare institutions, care homes and GPs. This supply also has no implications for the supplier’s right to deduct VAT.
Conditions:
- these are goods listed in the World Customs Organisation’s list (Annex to the Emergency Measures Decree);
- For the purposes of VAT deduction, the goods form part of the trader’s general expenses;
- the right to deduct VAT on these general expenses is determined on the basis of the trader’s total turnover, excluding goods supplied free of charge;
- The trader must state on the invoice that this approval is being used.
This approval will expire on 1 January 2021.
Reduced VAT rate for online sports lessons
In order to qualify for the reduced VAT rate (9%) on services involving the provision of opportunities to practise sport, such services must be provided in or from sports facilities.
Many gyms offered online classes for a while. The reduced VAT rate does not apply to these. As a result, gym memberships would temporarily be subject to VAT at the standard rate (21%).
It has now been approved that, during the period of compulsory closure, the reduced VAT rate will nevertheless apply to the online sports classes that gyms offer to their customers.
This authorisation expired on the date on which the mandatory closure of gyms was lifted.
Cross-border workers
It has been agreed with Belgium and Germany that the coronavirus crisis will – broadly speaking – have no impact on the tax and insurance obligations of cross-border workers.
Travel allowances
In our article Working from home and expense allowances We explain that fixed travel allowances may not be paid on a tax-free basis if the employee does not travel for an extended period, for example because they are working from home.
The State Secretary does not consider this appropriate under the current circumstances. It has therefore been agreed that, for the time being, the employer may continue to base the allowance on the travel pattern on which it was originally calculated.
This approval also applies to travel allowances based on retrospective calculation. For the current period, the employer may rely on the assumed facts on which this allowance is based.
These approvals are valid for the whole of 2020.
Employee identification
Employers must verify the identity of new employees for the purposes of payroll tax deductions, using the original identity document. This must be done before the first day of work. If the employer fails to do so, or does not do so in good time, the anonymous rate (52%) will apply when deducting payroll taxes.
During the coronavirus crisis, the Tax and Customs Administration is taking a flexible approach where an employer is reasonably unable to comply with a statutory administrative obligation as a result of the coronavirus crisis.
Conditions:
- the employer shall rectify the shortcoming(s) in the administrative obligation(s) as soon as possible;
- and includes a (digital) copy of the employee’s identity document in the payroll records in good time (i.e. before the first working day).
This approval applies throughout 2020
Payment discount
As the rate of recovery interest has been reduced from 4% to 0% (0.01%), the payment discount no longer applies. Business owners who are adversely affected by this may lodge an objection. They will then still receive the early payment discount.
Terms
Various time limits have been extended. These relate to time limits applicable to the silent contribution of a business to a private limited company, business mergers, statutory demergers, statutory mergers and silent reversion.