Value Added Tax Consolidation Act 2010 section 114

Interest payable by accountable persons

Section 114 provides for the charging of simple interest on unpaid VAT and on VAT refunds that have been overclaimed.

• Simple interest is charged at 0.0274% per day on any VAT that remains unpaid after the due date, including amounts due under the One Stop Shop schemes.
• Where a VAT refund is made that was not properly due, or exceeds the amount properly refundable, interest at the same daily rate applies from the date of the refund until the excess is accounted for.
• Special rules apply to authorised persons who pay VAT by direct debit: where the balance outstanding on the annual return exceeds 20% of the actual liability, interest is deemed to run from a date six months before the return filing deadline.
• Interest also applies to tax established by way of estimates or assessments under sections 110 and 111, calculated as if the tax were due for the relevant taxable period.