The recent VAT payment deferral arrangements were a welcome concession for businesses in the early stages of the coronavirus pandemic.
As the possibility to defer the payment of the VAT liability for VAT returns has lapsed, it is reminded that businesses should take the necessary steps to ensure that ongoing VAT payments are made on time. The deferral period effectively ended with the submission of the VAT return with the period ending 30 April 2020 which was due for payment by 10 June 2020. More information on the VAT deferral arrangements may be found here.
To avoid possible interest and penalties, businesses will need to ensure that VAT return submissions and payments falling outside the scope of the aforementioned deferral arrangements are made on time.
It is reminded that VAT which has been deferred will be due on or before 10 November 2020 and may be paid in full as a single payment before that date. Alternatively, if businesses prefer to spread the payments, these may be made at regular time intervals prior to this date. VAT liabilities for periods ending on 31 May 2020 onwards will need to be paid by their “pre-Covid” respective due dates i.e. the 10th of the second month following the period end.