Revenue are planning to withhold tax repayments and Tax Clearance Certs from VAT-registered businesses, who fail to submit an obscure statistical return of VAT sales and purchases.
The VAT ‘Return of Trading Details’, or RTD, is a mandatory form which requires each business to record their annual aggregate sales and purchases totals for each VAT rate.
The RTD was introduced in the early 1990s as part of the reforms to the VAT system following the adoption of the EU Single European market in 1992.
In those days, it was regarded as a very important form, as it enabled Revenue to monitor business sales and purchases for audit purposes, and compare respective totals against the corresponding figures in business accounts.
However, the RTD seemed to fall into disfavour about 15 years ago, with dwindling numbers of businesses bothering to file it each year subsequently.
This non-compliance never seemed to bother Revenue too much, and it became increasingly rare for Revenue demand completion and submission of RTD’s, or to refer to RTD’s in official correspondence.
This has all changed with today’s Revenue eBrief, unveiling new plans to enforce RTD completion and filing. This includes a new, “simplified” RTD, to be launched in late 2013, with local tax districts enforcing full compliance with RTD requirements from 1 September 2013.
Revenue state that, from that date, “taxpayers who are seeking repayments or refunds of tax may be requested by their local Revenue District to submit outstanding RTD forms in order for such repayments or refunds to issue.”
Time to get filing!
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