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How do the pandemic-related measures affect invoicing deadlines, payment conditions, as well as VAT filing and on-line reporting obligations?
The VAT Act stipulates that an invoice shall be issued on or before the date of performance for the given transaction, but no later than within a reasonable time-frame thereafter.
Reasonable time-frame is legally defined for two cases:
Compliance with invoice issuing deadlines may be hindered by pandemic-related measures if the buyer is not present when the invoice is issued and the invoice is paper-based. If, for example, the issuer of the invoice is in quarantine, or a strict curfew is imposed and therefore the vendor is only able to deliver the invoice to the buyer with a delay, such default cannot be penalized. The issuer of the invoice acts appropriately if the invoice is only delivered to the buyer after the quarantine or other pandemic-related measures have been lifted.
Performance of tax obligations (such as filing of tax returns) may be impeded if such taxpayer obligations are performed via the taxpayer’s accountant and either the taxpayer or the accountant falls ill at the time of the obligation deadline, or as a result of the pandemic-related measures, is unable to deliver the increased volume of documentation or to transfer them electronically. Where reasonable, the default in performance of a tax obligation can be excused with a certifying application . Please note that the application must be submitted along with the filing of the tax return, simultaneously to the performance of the overdue reporting obligation.
Source: National Tax and Customs Administration (NAV)
Reasonable time-frame is legally defined for two cases:
- If the value of the invoice is paid in cash or cash equivalent (e.g., debit card), the invoice shall be issued immediately.
- If the invoice includes output tax and is not settled as described above, the invoice shall be issued within 15 days from the transaction performance date.
Compliance with invoice issuing deadlines may be hindered by pandemic-related measures if the buyer is not present when the invoice is issued and the invoice is paper-based. If, for example, the issuer of the invoice is in quarantine, or a strict curfew is imposed and therefore the vendor is only able to deliver the invoice to the buyer with a delay, such default cannot be penalized. The issuer of the invoice acts appropriately if the invoice is only delivered to the buyer after the quarantine or other pandemic-related measures have been lifted.
Performance of tax obligations (such as filing of tax returns) may be impeded if such taxpayer obligations are performed via the taxpayer’s accountant and either the taxpayer or the accountant falls ill at the time of the obligation deadline, or as a result of the pandemic-related measures, is unable to deliver the increased volume of documentation or to transfer them electronically. Where reasonable, the default in performance of a tax obligation can be excused with a certifying application . Please note that the application must be submitted along with the filing of the tax return, simultaneously to the performance of the overdue reporting obligation.
Source: National Tax and Customs Administration (NAV)