22/05/2018

22/05/2018

VAT Adjustment – Unpaid Consideration

Errors in the preparation and submission of VAT returns can be very expensive for businesses.   It is important that businesses review their VAT returns regularly and have sound internal procedures in place to ensure that VAT returns are completed correctly. One common item that businesses overlook is the requirement to repay VAT reclaimed in respect of creditors outstanding for more than six months. If within six months of the end of the VAT return in which the VAT was repaid, the invoice has not been repaid there is a requirement for the VAT to be repaid to Revenue. As part of a Revenue aspect query / audit, Revenue will routinely review the creditors ledger to ensure that the appropriate adjustment has been made.  If the adjustment has not been made the VAT will be need to be repaid.  Interest on the late payment of VAT and a penalty may also be levied by Revenue.

What questions do you have?

We are happy to help. Please post your comment below or call Eamonn Madden, Tax Manager at Cooney Carey, on 01 677 9000. Alternatively, send him an email: emadden@cooneycarey.ie To keep in touch, connect with us on LinkedIn.

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