Simplified payment and filing arrangements for VAT

Revenue e-Brief No. 27/2007 sets out the background to the introduction of simplified payment/filing arrangements for VAT. These 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 payments for the year are between €3,000 and €14,000. Over 76,000 VAT-registered traders were eligible for the new arrangements.

When the new arrangements were notified to each trader in July, the opportunity was provided for traders to advise the Collector-General if, exceptionally, they did not wish to avail of the simplified arrangements. In such cases the normal bi-monthly filing and payment arrangement continued.

Some traders who did not contact the Collector-General in advance of the introduction of the new arrangements have since indicated, through their agent or directly, that they wish to remain on a bi-monthly basis for VAT payment and filing.

Ordinarily, traders should complete one phase of filing and payment under the new arrangements before reverting to a bi-monthly arrangement. However, to facilitate these traders in this transitional period, arrangements have been made to allow them to revert to bi-monthly filing and payment before the end of that first phase. The Collector-General’s Office will be writing to the traders concerned, and where relevant their agent, over the coming two weeks. Any necessary VAT form for completion will accompany the letter.