What are VAT estimates and assessments?

What is a VAT estimate?

When you fail to make a Value-Added Tax (VAT) return, Revenue has the power to make an estimate of the VAT due. A formal notice will issue to you setting out the amount payable. 

You cannot appeal a VAT estimate. Instead, you must submit properly completed VAT returns with the corresponding payment, if appropriate.

However, you can appeal on whether you are an accountable person and are not therefore required to make a VAT return. This must be made to the Tax Appeals Commissioners (TAC).

The payment of an estimate does not relieve you of the requirement to submit a correct VAT return.

What is a VAT assessment?

We may issue an assessment for VAT where we have reason to believe that you have:

  • not paid the correct amount of VAT
  • or
  • claimed too much VAT and received this amount.

A formal notice will issue to you setting out the amount payable.

You can appeal the VAT assessment to the Tax Appeals Commissioners (TAC).

Time limits for VAT estimates and assessments

The time limit for raising estimates and assessments is normally four years.

There is no time limit in cases of fraud or neglect.