Penalties and interest

The VAT collected by the Government each year is an important source of revenue. The Department’s powers for enforcing or encouraging payment of VAT are wide, strictly adhered to and are understandably feared.

The penalties most likely to be encountered are:

• Interest on late payment on tax
• Fines for errors on VAT returns (administrative penalties)
• Fines for late filing and/or non-filing of VAT returns (administrative penalties)

For more serious offences, penalties include criminal sanctions in the form of fines and/or imprisonment.

What does this mean to you?
If you carry on an economic activity you should be registered with the VAT department. This means that you are required to submit VAT returns and make payments of tax by certain deadlines.

If you fail to submit returns on time, pay tax late or fill in a return incorrectly, you may be liable to pay penalties and/or interest.

Once you make a late VAT return or payment, it is very hard to break out of the vicious penalty/interest cycle.

How can Grant Thornton help?
Grant Thornton has VAT specialists who have both technical knowledge and practical experience. We also deal with the VAT Department on a regular basis.

We can show you how you should keep records, remind you when returns and payments are due and be available to help with any question, you may have. Contact us about Penalties and Interest