VAT - Is it changing to quarterly

Simply answer is yes.

September, October, November and December is now due since January 19th.
 
Miles said:
Simply answer is yes.

September, October, November and December is now due since January 19th.
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...not for everyone. Some are still on bi-monthly. Some are on quarterly. Some are on six-monthly. Frankly, the system is a bit of a mess at the moment. I can't see how Brian Cowen didn't realise this when he brought in this half-baked measure in the 2007 Budget.
 

Apologies, should have stated that I am a sole trader and that the quarterly applies to me. Thanks for the clarification Ubiquitous .

Check on www.ros.ie or www.revenue.ie to what VAT return system applies.
 
If your annual VAT liability is less than €3k you are entitled to make VAT returns on a six-monthly basis. If it's between 3k and 14k, you can do returns every four months.
 
In practice what is happening is that Revenue are issuing VAT3 returns to each VAT registered business depending how their records classify the annual VAT liabilities. It seems to be pretty random as I have seen some tiny businesses with very small liabilities continuing to get bimonthly returns
 

It certainly does seem random. I believe that you can contact revenue and request to be put back on the bi-monthly system.
 
Indeed you can. But if in the meantime you fail to complete and file your VAT returns pending this adjustment, you may have the Sheriff on your doorstep before you know it.
 
I contacted revenue recently on this matter. I was a sole trader and Revenue had contacted me to tell me that they were switching me on to the quarterly system, which i didn't mind at all.

However, some months later I changed to a Ltd. Co. and I was automatically put on to the bi-monthly system. When I contacted Revenue I was told that they need to assess my turnover over the next 12 months and will then make a decision.

I was told I could apply to be put on the quarterly system, but for some reason I said no and I can't remember why. I'm thinking it may have been messier than waiting for them to do it?
 
ButtermilkJa said:
However, some months later I changed to a Ltd. Co. and I was automatically put on to the bi-monthly system. When I contacted Revenue I was told that they need to assess my turnover over the next 12 months and will then make a decision.
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This sums up why the new system is a farce.

An entrepreneur starts a new company from scratch, registers it for VAT today and starts trading in a month's time. It may take 6-12 months to build up the trade and during this time the company may have little or no VAT liability as its sales are low and it is claiming back VAT on setup costs.

A year later it has found its feet, and is paying heavy VAT bills. By this time, the Revenue have looked at the 1st year's trading pattern and decided that it is a "small business" and puts it on six-monthly returns. The liabilities on each six-monthly return are large, as they cover half of the entire year's liability, and they may cause particular cashflow problems for the business.

Fast forward another 12 months, and the Revenue once again examines the company and finds (shock, horror) that is no longer a "small business" and should have been on the bi-monthly or quarterly system from the start.

In that scenario, would anyone blame the entrepreneur for being confused?
 


Simpler system would be for all returns to be every 3 months - reduces the burden - and still good cashflow for the Revenue. As regards causing confusion the civil servants/politicians don't care as long as their canteen has good coffee, they get their benchmarked wage increase and they use up their sick pay days.
'Taxpayers treated as customers' - what a joke?
'Taxpayers Charter' - what a joke?
'Efficiency in the civil service' - a joke
HSE - a joke
HSE and P35 - a joke.

Banana Republic The Boomtown Rats song still applies
 
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