Revenue Warehousing of Debt

Last Updated: 21st May 2020

Revenue have suspended debt collection (i.e. enforcement) of the following tax payments in 2020:

1) VAT’s for: January/February, March/April and May/June 2020
2) Payroll Tax returns: February through to June P30 Liabilities

In addition Revenue will warehouse the debt for a period of 12 months, being the above debt and any future debt while the business was unable to trade or was trading at a significantly reduced level, plus an additional two months of tax debt to allow the business get back some positive cash flow.

While we await the legislation to be published, “trading at a significantly reduced level” is likely to mean sales activity to be down by at least 15% – 25%.

Covid-19 tax debts will be ‘warehoused’ for a period of 12 months interest free, and if an additional instalment repayment agreement is required after this period has elapsed, interest will be charged at the lower rate of 3%.

Tax clearance will not be affected.

We will update this note when we have legalisation clarifying the matter.