When are penalties payable to Revenue?

Penalties can arise when:

  • the appropriate amount of Value-Added Tax (VAT) is not paid at the correct time
  • or
  • when you fail to comply with specific obligations under VAT legislation.

A penalty can be agreed between you and Revenue or decided by the courts.

The following is a list of penalties for VAT

  • failure to register as an accountable person — €4,000
  • failure to charge the VAT and pay VAT over to Revenue — €4,000
  • failure to keep proper books and records — €4,000
  • failure to comply with invoicing requirements — €4,000 
  • failure to furnish a quarterly statement of intra-Community supplies (VIES return) to the Revenue Commissioners — €4,000 
  • assisting in making incorrect returns, invoices, credit notes — €4,000 
  • failure by a flat-rate farmer to issue an invoice showing the flat-rate addition — €4,000
  • issue of a VAT invoice by a non-registered person — €4,000
  • unauthorised charge of a flat-rate addition — €4,000
  • wilfully obstructing or delaying an officer authorised by the Revenue Commissioners in exercising his or her powers — €4,000
  • preventing or obstructing a person authorised by the Revenue Commissioners to inspect property for the purposes of valuing the property for VAT purposes — €4,000
  • where the failures or acts referred to above are carried out by a body of persons, the secretary of the body is liable for the payment of a separate penalty — €4,000
  • supplying taxable goods and services in breach of the requirement of security for the protection of the Revenue (Section 109 bond) in respect of each such supply — €4,000.

Penalties for deliberate or careless behaviour in filing a VAT return

Penalties will be applied if you:

  • deliberately or carelessly furnish an incorrect return
  • make an incorrect claim or declaration
  • fail to file a return due.

The penalties applied are based on the difference between:

  • the amount of tax paid or claimed, if any
  • and
  • the amount properly payable or refundable.

The rate at which the penalty is calculated will vary depending on various factors, such as:

  • whether the person carelessly but not deliberately failed to comply
  • whether the person co-operates fully with Revenue and the timing of that co-operation in certain circumstances 
  • whether a person makes a qualifying disclosure.

Further guidance contains more detailed information on interest and penalties.