The Deputy Minister of Finance in a 14 April 2020 letter to the Lower House of Parliament included a “policy statement” that further elaborates on the emergency tax measures in the government’s response to the coronavirus (COVID-19) pandemic.
The policy statement contains a number of previously unannounced relief measures, as described briefly below. The provisions in the policy statement are retroactively effective to 12 March 2020.
The measure does not affect the recovery of the outsourcer’s input VAT. The outsourcing does not give VAT-able persons that perform VAT-exempt services an (additional) VAT recovery right, nor does the application of the approval diminish any VAT recovery right they may have.
Both measures can be applied retroactively from 16 March 2020 and will be effective until 16 June 2020.
The Netherlands and Germany agreed how to deal with salaried cross-border workers who work from home during the coronavirus situation. Taxpayers may treat the extra days worked at home in accordance with the rules for the location where they would work under normal circumstances (the “usual” country of employment). The agreement applies from 11 March 2020 through 30 April 2020 and will be automatically extended each month until one of the countries terminates the agreement.
Negotiations are currently taking place with Belgium about a similar agreement.
This measure is effective retroactively from 1 April 2020.
Read an April 2020 report prepared by the KPMG member firm in the Netherlands
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