Revenue Note for Guidance

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Revenue Note for Guidance

76. Returns and remittances

Summary

This section sets out the general rules on when VAT becomes payable to the Collector-General. It provides that every accountable person must submit a return and pay any tax due by the 19th of the month following the end of each 2-monthly taxable period (January/February, March/April, etc – see definition of taxable period in section 2(1)). The return is submitted on a prescribed form (the “VAT 3”) and shows VAT due on sales and VAT deductible on purchases.

The section also provides that persons such as liquidators and receivers who dispose of an accountable person’s assets must send in a return and payment by the 19th of the following month; in this case the accountable person does not include the details on his/her own tax return. Delegated authority for making tax returns is also provided for.

Details

(1) The tax that falls due during any taxable period becomes payable to Revenue between the 10th and 19th of the following month.

The taxpayer is required to lodge a VAT return in connection with such payment. The VAT return sets out the tax due (box T1 on the VAT return) and the tax deductible (box T2 on the VAT return.).

Note, in the case of supplies to which the special schemes for telecommunications, broadcasting and e-services are applied the tax becomes payable on or before the 20th day of the month following the relevant calendar quarter –sections 91C(3) and (4) and 91E(3) and (4) refer.

(2) Subsection (2) deals with the liability of liquidators and receivers. Effectively, the liquidators or receivers of an accountable person’s business must account for VAT on the disposal of the business assets and on the services supplied in the course of carrying on, or winding up the business.

  • (2)(a) A person such as a liquidator or receiver who disposes of goods forming part of the assets of an accountable person or who, in the course of carrying on the business or winding up the business of the accountable person, supplies taxable services (including lettings) deemed to be supplied by the accountable person, must furnish a return at the end of each two-month taxable period and pay the total amount of tax due in relation to;
    1. those supplies,
    2. an adjustment required under the capital goods scheme (see section 64), and
    3. an adjustment required under the transitional rules for immovable goods (see section 95(4)).

    This must be done between the 10th and the 19th of the following month. The tax must be paid at the same time.
  • (2)(b) The liquidator, receiver, etc. must send to the accountable person such details as may be specified by regulations.
  • (2)(c) The tax due is treated as a necessary disbursement out of the proceeds of the disposal or the income from the services supplied.

(3) Subsection (3) provides that the accountable person is entitled to exclude from any VAT return required to be made by him/her the tax on supplies of goods or services for which the liquidator, receiver etc. is required, under subsection (2), to account.

(4) Subsection (4) deals with delegated authority for making returns.

  • (4)(a) Paragraph (a) facilitates the making of a VAT return or an adjustment to a VAT return by a person acting under the authority of an accountable person.
  • (4)(b) Paragraph (b) provides that where a VAT return is furnished by a person acting under an accountable person’s authority, the provisions of any enactment relating to VAT will apply as if the return was furnished by the accountable person.

Relevant Date: Finance Act 2019