PART 13 – ADMINISTRATION AND GENERAL

Overview

This Part, which contains 4 Chapters, sets out the provisions relating to the administration of the tax.

Chapter 1 deals with general administrative provisions and places VAT under the care and management of Revenue. Chapter 1 also includes Revenue’s powers to enter business premises and, in some cases, inspect and remove a trader’s records. (Sections 106 to 108).

Chapter 1A deals with special measures for the protection of the tax and includes Revenue powers to address tax evasion and fraud. (Sections 108A to 109A).

Chapter 2 covers estimates, assessments, electronic returns and time limits (sections 110 to 113). Where a person fails to make a VAT return, Revenue has power to make an estimate of the VAT due. Where a trader makes a VAT return but understates the liability, Revenue may make an assessment for any further VAT due. A person may lodge an appeal against an estimate on the grounds that he or she is not an accountable person; an assessment may be appealed on the grounds that the amount is excessive. The time limit for raising estimates and assessment is normally 4 years. There is no time limit in the case of fraud or neglect.

Chapter 3 deals with interest and penalties (sections 114 to 118). Simple interest, at the rate of 0.0274% per day, is charged where VAT becomes payable by an accountable person but is not paid, or where a refund is over-claimed. Interest is also chargeable on arrears of tax established by means of estimates or assessments. There are also prescribed penalties – generally €4,000 – for failure to comply with specific requirements of VAT legislation, such as the obligations to register or to keep proper records. Additional penalties apply in cases of fraud or neglect – in this case, the amount is based (inter alia) on the amount of the tax loss.

Chapter 4 deals with appeal provisions, along with Revenue’s power to make regulations for the purpose of administering the tax (sections 119 and 120).

Chapter 1 - Administration

106. Care and management of tax

This section places VAT under the care and management of Revenue.

Relevant Date: Finance Act 2020