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
- 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
- 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.