Amendments to the bylaw on the implementation of the General Tax Act

On 17 September 2020, the new Bylaw on the implementation of the General Tax Act with amendments in the field of taxation due to the COVID-19 pandemic entered into force. The new amendments to the Bylaw on the implementation of the General Tax Act enact the following significant changes related to VAT on imports and costs of employee testing for COVID-19:

• For import of goods performed until 31 December 2020, value added tax on import is considered paid if the taxpayer, entered in the register of value added taxpayers, reports the amount of VAT as a liability in the value added tax return (VAT form).

• Due to the special circumstances related to the COVID 19 pandemic, as an exception from special regulations on personal income taxation, the cost of infectious disease laboratory testing, provided by the employer and payer of the receipt (income) at his own expense to employees and natural persons who earn income from employment, in the interest of performing the activities of the employer and payer of the receipt, is not considered as a receipt from employment.

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Please keep in mind the fact that legislation is subject to frequent change. This newsletter is therefore necessarily based on our understanding and correct interpretation of the law and practice at the time of publication of this newsletter. This newsletter will not be updated due to changes in legislation that occur after the issuance of this letter.