Revenue E-Brief Issue 27, 7th June 2007

New simplified payment arrangements for VAT

Following an announcement in Budget 2007, a new simplified payment arrangement for VAT is being introduced by Revenue. The new arrangement will consist of bi-annual filing and payment for those traders whose total VAT payments for the year are €3,000 or less, and four-monthly filing and payment for traders whose total VAT payments for the year are between €3,000 and €14,000.

Who does this new arrangement affect?

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.

How will the changes be implemented?

Revenue will very shortly be writing to each eligible trader advising how the new simplified filing and payment arrangements will apply. There is no need for traders to take any action now in relation to this change. 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.

The new arrangement will involve:

Bi-annual filing and payment for those traders where the total VAT payments for the year are €3,000 or less and
Four monthly filing and payment for traders where the total VAT payments for the year are between €3,000 and €14,000.

Traders who are in a net repayment position are not 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.

Traders who receive a notification from Revenue regarding the new filing and payment arrangement for VAT and who, exceptionally, do not wish to avail of this new arrangement will be able to contact our helpline on 1890 707071.

What will be the future schedule for VAT returns and payments?

The future schedule for VAT payments And returns for eligible traders will be as follows:

Traders with total VAT payments for the year of less than €3,000
Tax Period	Frequency	File & Pay
July – December 2007	Bi-Annual	Bi-Annual VAT 3 return and payment (if due) by 19th January 2008.
January - June 2008	Bi-Annual	Bi-Annual VAT 3 return and payment (if due) by 19th July 2008.
July - December 2008	Bi-Annual	Bi-Annual VAT 3 return and payment (if due) by 19th January 2009.

Traders with total VAT payments of between €3,000 and €14,000 for the year
Tax Period	Frequency	File & Pay
September – December 2007	Four Monthly	4 Monthly VAT 3 return and payment (if due) by 19th January 2008.
January - April 2008	Four Monthly	4 Monthly VAT 3 return and payment (if due) by 19th May 2008.
May - August 2008	Four Monthly	4 Monthly VAT 3 return and payment (if due) by 19th September 2008.
September - December 2008	Four Monthly	4 Monthly VAT 3 return and payment (if due) by 19th January 2009.

Payment and filing requirements will continue on a similar basis thereafter.