You may be aware that in past, if you had a large reclaim of VAT due from revenue (due to an unusually high amount of purchases, one off large expenses or a change in the nature of your business), revenue held the repayment due and requested the information to support the large reclaim.

This procedure has changed. If you haven’t filed your July / August VAT return yet, you will need to be aware of the following.

Revenue have now begun to seek further information at the FILING stage of your return (i.e. this change is happening now, for the July / August return due next week).

There are new questions to answer when filing the return. Revenue ask if there has been exceptional business purchases which have resulted in an unusually large reclaim. If you are making an unusually large claim including capital items (equipment, vehicles, plant and machinery, property, expensive software, franchise license etc) this box should be ticked ‘yes’ (there are only ‘yes’ and ‘no’ options).  If you click no, be sure this is correct.

Revenue are seeking the FULL detail of these large invoices at filing stage of the VAT return, therefore, you will need these invoices to hand when you get onto ROS to file the return this week or next or you will need to give these invoices to your tax agent (accountant) BEFORE they file your VAT return.

The revenue also have included a few new warnings when you file the return. In red writing they ask are you sure you wish to submit this return and one further warning in red, stating it is an offence to file an incorrect VAT return.

The fine for assisting in making an incorrect VAT return is €4,000. (Not for the faint-hearted!)

If you are unsure of what should be highlighted to your accountant (if they file your return) or what exactly should be included, please seek that advice soon.

When rules change, get the detail early, ensure you comply with the new rules, and have an easier life.

If you have any queries, please contact me. Wendy@williamsmerrigan.ie