What are VAT estimates and assessments?

Updated on March 13, 2022

What is a VAT estimate?

Revenue can make an educated guess as to how much VAT is payable in the absence of a completed VAT return. You’ll get a letter in the mail informing you of the debt.

There is no way to contest a VAT estimate. As a result, you’ll need to file a VAT return and pay any applicable taxes.

An appeal can be filed if, in your opinion, you are not an accountable person. If you do not charge VAT and file VAT returns, you will not be required to do so. You must file an appeal with the Revenue Appeals Commission (TAC).

Although you have paid an estimate, you are still required to submit an accurate and comprehensive value added tax return (TVA).

What is a VAT assessment?

We may issue an assessment for VAT where we have reason to believe that you have:

  • not paid the correct amount of VAT
  • or
  • claimed too much VAT and received this amount.

A formal notice will issue to you setting out the amount payable. You can appeal the VAT assessment to the Tax Appeals Commissioners (TAC).

Time limits for VAT estimates and assessments

Estimates and assessments usually have a four-year time limit. In circumstances of fraud or neglect, there really is no time limit.