Irish Revenue To Introduce New VAT Payment System

by Jason Gorringe, Tax-News.com, London

11 June 2007

Following an announcement in Budget 2007, a new simplified payment arrangement for VAT is being introduced by the Irish Revenue Commission.

The new arrangement will consist of bi-annual filing and payment for those traders whose total VAT payments for the year are EUR3,000 or less, and four-monthly filing and payment for traders whose total VAT payments for the year are between EUR3,000 and EUR14,000.

Revenue has identified over 76,000 traders who are eligible under the new arrangements to change from the current bi-monthly arrangement to either a bi-annual or a four monthly arrangement.

The Revenue said that it will very shortly be writing to each eligible trader advising how the new simplified filing and payment arrangements will apply. A copy of the letter being sent to each trader will be sent to his or her agent in order to inform the agent of changes in the filing and payment obligations.

Traders who are in a net repayment position are not to be included in the scheme, and will continue to file every two months.

Also, traders who pay by means of direct debit will continue to do so and will file one annual return at the end of their accounting period, as before.

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