Value Added Tax Consolidation Act 2010 section 114B

Covid-19: special warehousing and interest provisions

Section 114B provides for the warehousing of VAT liabilities arising during the Covid-19 pandemic, with reduced or zero interest rates applying where an accountable person remains compliant with tax obligations.

• VAT liabilities arising during Period 1 (the Covid-19 restricted trading phase) can be deferred ("warehoused") where a business was adversely affected by Covid-19 and the accountable person has filed all required VAT returns.
• No interest applies during Period 1 or Period 2; a reduced rate of approximately 3% per annum (0.0082% per day) applies during Period 3 where the accountable person has entered into a payment agreement with the Collector-General.
• The standard interest rate of 0.0274% per day applies where the accountable person fails to comply with tax obligations or does not enter into a payment agreement by the required date.
• While warehousing applies, the accountable person can still obtain tax clearance and Revenue will not enforce collection, provided the person continues to file returns.