Covid 19: Tax Department introduces measures to allow for the payment of VAT in installments.

On 9 February 2021, the Department of Taxation issued an announcement in respect of Law 5(1)/2021 concerning the payment of VAT due in respect of the tax periods ending on 31 December 2020 and  31 January 2021.  The law permits some categories of VAT registered persons to make payment of any VAT due relating to these tax periods in three equal installments, with the first payment being deferred until 10 April 2021.  Normally  a VAT return submission and associated payment for the period ended 31 December 2020 would be subject to a 10 February 2021 deadline.  The ordinary deadline for submission and payment in respect of the period ended 31 January 2021 is 10 March 2021.

Specifically:

Taxable persons who do not wish to make use of the arrangement outlined above may, in relation to the periods covered by the arrangement, submit a return by the normal due date and make a payment, of all or part of the amount due before 10 April 2021.  Any amount still outstanding on 10 April 2021 may be paid in three equal installments as outlined above.   

Payments may be made via internet banking using the reference number shown in the Tax Portal.   It should be noted that if a taxable person fails to make payments for theses two tax periods in accordance with the provisions outlined above, then any VAT due will be subject to a 10% surcharge and attract penalty interest.

Categories of business excluded from the scheme are listed in  an attachment to the announcement. For more information on this or other VAT and taxation issues please contact our tax department or speak with your usual contact at Elias Neocleous & Co LLC.

SHARE

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
Share on telegram
Share on email