Updates for outstanding VAT payments for returns that were suspended until 10 November 2020

The House of Parliament, on October 30, 2020, passed an amendment to the VAT Act. The amendment extends the payment for the outstanding amounts arising from the VAT returns that payments were suspended until 10 November 2020.

The repayment of the amounts due can be made in six (6) equal installments from November 10, 2020 to April 10, 2021 without the imposition of additional charges and interest on these amounts. The exemption from the imposition of additional charges and interest applies to all cases of VAT returns for which the payment was suspended until November 10, 2020, whether it concerned a quarterly or monthly VAT return. VAT returns for which there was no right to suspend payments until 10 November 2020 are not included in the current amendment and are subject to additional charges and/or interest.

Thus, based on the new amendment, the VAT amount due should be paid in six (6) equal installments, and the corresponding amount should be paid on the 10th of each month starting from November 10, 2020 (i.e. on 10/11/2020, 10/12/2020, 10/1/2021, 10/2/2021, 10/3/2021 and 10/4/2021).

There is also the possibility to pay the VAT amount due, in fewer, continuous, monthly installments starting from November 10, 2020.  *For any questions, clarifications or if you would like to further discuss the possible impact of the Circular on your business, please contact us.