VAT Amnesty Scheme - Remission of interest and penalties 

The scheme is applicable to VAT registered persons who would have failed to file VAT returns falling due up to 15 October 2011 and/or who owe VAT arrears.

Persons registered under Article 10

A person registered under Article 10 would be entitled to avail himself of the scheme if he:

• owes arrears in respect of period(s) in respect of which the VAT return was due no later than 15 October 2011

• has submitted all VAT returns which were due by 15 October 2011 by not later than 15 January 2012;

• duly submits all VAT returns falling due on 15 November 2011 and on subsequent VAT return due dates together with payment in full (if applicable);

• withdraws any VAT appeal by 15 January 2012; and

• pays the arrears (net of remission) by following any of the programmes indicated below:

 

Payment options	Corresponding remission
Amount paid in full by 15/03/2012	80% reduction in interest and penalties
30% of the amount paid by 15/03/2012 and the remaining amount paid by 15/05/2012 in equal monthly instalments	70% reduction in interest and penalties
30% of the amount paid by 15/03/2012 and the remaining amount paid by 15/08/2012 in equal monthly instalments	60% reduction in interest and penalties
30% of the amount paid by 15/03/2012 and the remaining amount paid by 15/02/2013 in equal monthly instalments	50% reduction in interest and penalties

The percentage remission as set out above is calculated on the amount of interest and administrative penalties due.  However, where the remaining balance due for a particular period is less than the total interest and administrative penalties for that period, the percentage remission is computed on the amount of the remaining balance due.

A person registered under Article 11 or Article 12 who has failed to submit a required VAT declaration is entitled to a reduction of the associated administrative penalty to €10 in respect of each default as long as he:

• submits all pending declarations; and

• pays the amount of the reduced penalty,

The remission of interest and administrative penalties will not take effect before the VAT taxpayer effects the final payment as scheduled. It is also pertinent to note that where a person has benefitted from a remittance of interest under this scheme, in the case of a future VAT refund which becomes due to that person within 6 years from the remission, the VAT Department reserves the right to deduct the amount of the interest previously remitted in terms of the scheme from any interest due by the Department on the VAT refund.