Ireland’s tax authority sends 2k bogus VAT demands to EU SMEs

No primary category set

Irish Revenue (the Republic of Ireland’s tax authority) has apparently sent out 2000 erroneous letters to EU online sellers demanding VAT payment under the EU VAT MOSS scheme. #vatmoss

The demands, often for many thousands of Euros, were thought by many to be a scam but it turns out they have been sent out by Revenue incorrectly.

Revenue has since issued a statement acknowledging the error but has confirmed that they will be sending new letters for VAT MOSS payments. They said: “Revenue has recently issued approximately 2,000 payment reminder letters to suppliers of eServices who are registered under the VAT MOSS scheme. This is in accordance with the rules of VAT MOSS, where payment has not been received by Revenue in respect of a past tax period.

Unfortunately, due to a technical error, the information contained in these reminders is incorrect. Revenue is in the process of correcting the errors. In the meanwhile, the recent payment reminders should be ignored. In due course, new and accurate reminder letters will issue to any remaining customers who have not made the appropriate payments.”

John McCarthy, CEO of digital tax specialists Taxamo says of the error: “While Irish Revenue have confirmed this particular batch of letters can be ignored, this situation highlights that digital sellers who are part of the VATMOSS scheme can be contacted directly by Member States in pursuit of settlement arrears. Merchants therefore need to ensure that they are capturing and maintaining accurate records of all transactions for tax compliance.”

This is interesting because Tamebay was under the impression that individual member states were required to contact UK taxpayers via HMRC only and not directly. Apparently this was just an informal agreement, which is worrying.

Did you get an Irish VAT demand in the post this week?

One Response

  1. We done goofed, we’re not going to apologize abd don’t get too comfortable because you won’t shake us off. We look forward to sending you more extortionate bills in the near future for you to spend more of your time chasing up and disputing’

RELATED POSTS..

Stuart Hill Ex Matches COO on transitioning to logistics at DHL

Stuart Hill Ex Matches COO on transitioning to logistics at DHL

Referral Fee Changes Amazon Base Reserve policy impacts cashflow Amazon Disbursements held & VAT Liability email Amazon delay FBA Fee changes (and correct errors)

Amazon Disbursements held & VAT Liability email

Jersey GST applied to ecommerce from 1st July

Amazon notify sellers of Jersey GST

Jersey GST applied to ecommerce from 1st July

Jersey GST applied to ecommerce from 1st July

low-value goods VAT

EU low-value goods exemption to end

ChannelX Guide...

Featured in this article from the ChannelX Guide – companies that can help you grow and manage your business.

Latest

Take a look through a selection of the latest articles on ChannelX

Register for Newsletter

Receive 5 newsletters per week

Gain access to all research

Be notified of upcoming events and webinars