Winter 2020 update

On 24 September 2020, additional measures in relation to VAT extended deadlines to settle VAT payments previously due for payment between 20 March 2020 and 30 June 2020 to 31 March 2021. 

Payments of the deferred VAT can be made in 11 interest-free instalments up until 31 March 2022 instead of March 2021. Businesses will need to opt in to the scheme. 

Summer 2020 update 

Prior to the measures announced on 24 September 2020, VAT-registered businesses could defer payments that were due from 20 March 2020 to 30 June 2020.

The measure applied to payment deadlines for the following VAT quarters:

  • 29 February 2020: normal payment deadline 7 April
  • 31 March 2020: normal payment deadline 7 May
  • 30 April 2020: normal payment deadline 7 June

The deadline for settling the deferred VAT liabilities was 31 March 2021.

The relief was automatic and does not need to be claimed or required an opt-in. 

When paying on account from 20 March 2020 to 30 June 2020, if any balancing payment fell outside of these dates, the amount that must settled was the balancing payment less any deferred payments. Deferring payments could not create a repayment.

VAT reduction for the hospitality and tourism sectors

VAT reduction to 5% for the hospitality and tourism sectors was previously due to end on 12 January 2021 but has been extended to 31 March 2021.

Zero rating of PPE

From 1 May 2020 to 31 July, the VAT on sales and purchases of personal protective equipment (PPE) has been reduced from 20% to 0%.

Cut of VAT rates on e-books

From 1 May 2020, VAT on e-books, online newspapers and journals has been cut from 20% to 0%. Previously, scrapping VAT on online publications was planned to be brought in from December 2020.