Tax Warehousing for Irish Business and update on Pay and File Deadline

Tax Warehousing refers to the deferral of VAT and PAYE payments until next year to help companies impacted by Covid 19.  Revenue will not charge any interest on this outstanding tax. For most SMEs VAT for January, February, March and April and PAYE due for February, March and April was automatically warehoused by Revenue.  Larger companies (where turnover exceeds €3m) have to contact revenue to arrange to have VAT and PAYE warehoused. All businesses can request to warehouse VAT and PAYE which built up while they were closed or while trading was restricted up to and including 2 months after the business re-opened. 

Non Covid related tax debt cannot be warehoused. For example: Corporation Tax due for 2019 cannot be warehoused.   Instead companies can enter into a Phased Payment Arrangement with Revenue to pay this over an agreed period of time at a reduced interest rate of 3%.

Warehousing tax or entering into a Phased Payment Agreement will not impact on a tax clearance status provided tax returns are filed on time and businesses keep up to date with current taxes.  

In other welcome news, Revenue have extended the Pay and File deadline (for those who pay and file online) to 10th December 2020. 

If you have any questions please feel free to contact me.

For more information see: