COVID-19 and the VAT Response.

• Position: BY THE NUMBERS

As the COVID-19 pandemic continues to greatly impact the global economy, one area in which countries have attempted to ease the burden is value-added tax (VAT). Some countries have chosen simply to accelerate VAT refunds or offer payment extensions or deferment, but many have decided to reduce VAT rates significantly or cut them altogether on goods related to the outbreak, such as medical equipment. In this issue of Tax Executive, we highlight some of the specific rate reductions, as noted by the Tax Foundation in "Tracking Economic Relief Plans Around the World During the Coronavirus Outbreak."

For a more in-depth look at economic relief plans across the globe, visit www.taxfoundation.org/coronavirus-country-by-country-responses.

China

Through the end of May, VAT was reduced from 3% to 1% for small businesses.

3%[right arrow]1%

Greece

VAT for goods related to addressing the outbreak was reduced from 24% to 6%.

24%[right arrow]6%

South Korea

The VAT...