VAT Repayments Offset

Update to Revenue’s Guidance Note – VAT Repayments Offset

Revenue updated its guidance note on VAT Repayment Offset effective from July 2023. The update provides additional information on using VAT repayments to offset against Debt Warehouse Periods via ROS.

Background

Warehousing of tax debt assisted businesses who experienced cash-flow and trading difficulties during the COVID-19 pandemic. Under the scheme, a business could defer paying some eligible tax liabilities, until it was in a position financially to deal with the debt.

Update

In the case of filing a current VAT return, generating a repayment claim, businesses up until now could elect to offset that refund against other periods and/or other tax liabilities.  Through this update in ROS, business who have warehoused Employer’s PAYE, VAT or IT can now instead elect to offset a VAT repayment amount to a specific tax and period within the debt warehouse.  Where debt was has been warehoused, ROS will display two options for offset the latter option being against any warehoused debt. Where debt has not been warehoused the second option will not show

Under Revenue guidance, a maximum of 2 debt warehoused periods can be selected for offset. Users can manually choose how much to offset and for which periods. The Debt Warehousing offset will be the final instruction carried out when offsetting in circumstances where there are other tax periods with liabilities.

Should you have any queries in respect of the above or the implications for your business, please contact;