One of the business support measures in place for COVID-19 is the ability to defer VAT payments otherwise due between 20 March 2020 until 30 June 2020.
The relief from payment is automatic, there is no need to obtain approval. However, businesses need to make sure the VAT isn’t automatically collected from their bank accounts where direct debits are in place. If the direct debit is cancelled it is best to make sure there is at least one working day before the deduction takes place in order to give the Bank the necessary time required.
Businesses must remember to reinstate the direct debits for payments arising after 30 June 2020 (unless this deferral period is extended further).
Businesses will have until the end of the 2020-21 tax year to pay any liabilities that have been deferred from this period.
VAT repayments that arise during this deferral period will be paid by the government as normal.
If you have any questions please contact us at DTE to discuss these measures further.
This document was originally published online. Please visit our website for the most up to date information and advice for businesses relating to Covid19.