Revenue has confirmed that reductions in the frequency of VAT, PAYE/PRSI, and RCT tax returns and payments for smaller businesses are being extended to eligible businesses from 1 January 2013.

For VAT returns and payments, businesses making:

• total annual VAT payments of less than €3,000 are eligible to file VAT returns and make their payments on a 6 monthly basis;
• total annual VAT payments of between €3,000 and €14,400 are eligible to file VAT returns and make their payments on a 4 monthly basis.

Where a business is making total annual PAYE/PRSI payments of up to €28,800 they are then eligible to make their payments on a 3 monthly basis. Likewise were total annual RCT payments are up to €28,800 businesses are eligible to file RCT returns and make payments on a 3 monthly basis.

Revenue will shortly write to each eligible business confirming that reduced frequency of tax returns and tax payments will apply from 1 January 2013.

Further details are set out in eBrief No. 55/12 which is re-produced on here.