Key COVID-19 VAT and customs measures

Assistance for business with difficulties meeting VAT liabilities

To assist small and medium enterprises (SMEs) with cash flow and trading difficulties arising out of the COVID-19 pandemic, Revenue has announced the suspension of interest on late payments of VAT liabilities for January/February and March/April 2020.

Taxpayers should continue to file their returns on time even if payment in full or part payment is only possible at that time.  Where key personnel responsible for the preparation of VAT returns and computation of liabilities are not available, the advice is to file the return of a “best estimate” basis and any resulting “self-correction” can be completed without penalty.

In addition, Revenue has currently suspended enforcement proceedings on past liabilities due.

Current tax clearances will remain in place for the coming months.

Please note that Revenue has confirmed that for tax purposes, it considers an SME to be a business with turnover of less than €3m who is not dealt with in either Revenue’s Large Cases Division or Medium Enterprises Division.

Temporary zero-rating of supplies of personal protective equipment, ventilators and other medical products 

Revenue has announced that it will allow the application of the zero rate of VAT, on a temporary basis, to the supply to the HSE, hospitals and other health care settings of personal protection equipment and medical equipment for use in the treatment of patients with COVID-19.

The temporary VAT zero-rating measure will permit the zero rate to apply to the supply and intra-Community acquisition of the goods listed below when supplied to or acquired by the HSE, hospitals, nursing homes, care homes, GP practices and the like, for use in the delivery of COVID-19 related health care services to their patients: 

• personal protection equipment (PPE) 
• thermometers 
• hand sanitiser
• medical ventilators and specialist respiratory equipment
• oxygen

The zero rate may only be applied to supplies to hospitals, nursing and care homes, GP practices and the like; supplies to any other operators even if they are intended for onward supply to a healthcare provider are liable at the standard rate.

This concessional treatment will apply from 9 April 2020 up to 31 July 2020, subject to review.