How it works and how to request the COVID Lost Fund
Being addressed to SMEs, self-employed workers and farms, the typology of companies already suggests something. In fact, they must have a ceiling on turnover. So, that do not reach 5 million euros. To better say that they did not reach it in the tax period prior to the current one, that is 2019. In addition, this turnover must have decreased by at least a third in April of this year compared to the same period of 2019.
It is useful to remember that this contribution, which we will see immediately, is tax-freetotally. As mentioned, it is calculated based on the differences found with the turnover of the previous year. To be precise, 20% for revenues or fees up to 400,000 euros. It drops to 15% for businesses and VAT numbers that have collected between 400,000 and one million euros. It still drops to 10% with 2019 turnover between 1 and 5 million euros. Let’s clarify everything with an example. In April 2019, you invoiced 20,000 euros. You billed 10,000 this April. The contribution will be 20% of 10,000, therefore 2,000 euros.
And for others? For those who have not invoiced? How does the COVID Lost Fund work?
If you did not invoice last year, no percentage breakdown. You will only receive the minimum contribution. 1,000 euros for natural persons, 2,000 for legal entities (businesses). Even those who started doing business only in 2019, and have not invoiced anything, will receive the minimum amount. How to get it all? Adjust demand toRevenue Agency. You can use the Internet, go to local offices or have it done by an intermediary, such as a CAF. The answer will take place within 7 working days. In the event of a positive response, the debit will be immediate on the account indicated in the application.