Value Added Tax Consolidation Act 2010 section 114A

Interest payable in certain circumstances

Section 114A provides for the charging of interest where a VAT refund has been made to a person who was not entitled to it, or where the refund exceeded the correct amount.

• Where a VAT refund is made under a ministerial refund order and the amount refunded was not properly due, the recipient must pay simple interest on the excess.
• Interest runs from the date the refund was made at a rate of 0.0274 per cent per day or part of a day until the overpaid amount is correctly accounted for.
• The interest charge applies whether no refund was due at all or the refund simply exceeded the correct entitlement.
• Where Revenue raises an assessment to recover an incorrectly refunded amount, the interest provisions apply as though the tax were tax payable for the period covered by the assessment.