RSM Update Alert: Latest Legislative Act 13/4/2020

Article 3 of latest Legislative Act (13.04.2020) articulates the provision of the benefit of the offsetting of VAT debt by 25% with other tax liabilities in case of full payment of VAT debt.

Companies that have been affected (by virtue of CBA) by the COVID-19 pandemic, are granted of the following benefit if they pay in full by April 30, 2020 the total amount of the debt corresponding to the VAT return of March 2020 for those keeping double-entry books or VAT return of 1st quarter of 2020 for those keeping single-entry books: They can offset the amount equal to 25% of the previous VAT debt paid with debt payments or installments or adjustments to the Tax administration with deadline after May 1, 2020. For those keeping double-entry books this is provided on the condition that VAT Return of February has been fully paid. Companies on mandatory suspension of their operations on March 26, 2020 are excluded from the aforementioned condition. If an amendment declaration is submitted for the above periods, which reduces the initial debit amount of the declaration, the amount of offsetting is reduced accordingly.