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Ireland suspend late VAT penalties on coronavirus crisis

  • Feb 27, 2021 | Richard Asquith

27 Feb - Ireland returns standard VAT rate to 23% from 1 March 2021.

27 Jan - Ireland has moved the deadline for the filing of the annual VAT return of trading details to 10 March 2021. It is a summary of supplies of goods and services, imports and purchases giving rise to deductible input VAT at the various VAT rates. The return includes all Irish, intra-EU and overseas trade carried out by the Irish business. 

25 Nov - the threshold for claiming Irish VAT back by post-Brexit UK tourists has been reduced from €150 to €75 from 1 January 2021 under the VAT Retail Export Scheme.

12 May - interest is being suspended in June and July VAT returns.

6 May - The Irish Revenue may now 'warehouse' VAT and other tax debts. The means put a freeze or long-term repayment plan in place with the most affected businesses. Not interest will be charged on these liabilities. The measure will be in place until March 2021.

4 April update - extension on late VAT payments has been made to include April instalments. 

The Irish Revenue Commission has announced Value Added Tax measures to help business with cashflow issues arising from the coronavirus Covid-19 pandemic. Follow Avalara’s live  global coronavirus Covid-19 VAT measures tracker.

It has suspended VAT liabilities enforcement activities. There will be automatic no late interest or payment penalties for January-February VAT payments for small businesses below €3million annual turnover. Larger busineses must contact the Revenue for delays on their payments. However, VAT returns must still be filed on time. The Revenue has advised businesses in trouble to contact it to negotiate payment terms.

Explore more content like this in our Building for COVID-19 recovery hub

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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