Recent law changes came into effect that will result in significant penalties should you fail to lodge your VAT return on time.
From now on, even if you are due a VAT refund or are lodging a nil VAT return, you will be fined VT30,000 (if an individual) or VT50,000 (if an entity) if you lodge your VAT return late. In addition, for each day that the VAT return remains outstanding, a further VT3,000 (for individuals) and VT5,000 (for entities) will apply.
It is therefore extremely important that your VAT return is lodged by the due date, even if you are lodging a nil return or expecting a VAT refund. If AJC prepares and lodges your VAT return for you, it is imperative that all information and documentation is provided to us well before the due date for lodgement.
The penalties for late payment of VAT have also changed. From now on a 5% late payment penalty will apply, and for each day until payment is made additional interest calculated at the rate of 20%p.a. will also apply.
The above changes will apply to January 2020 VAT returns which are due for lodgement by 27th February.
Should you have any questions regarding the above, please do not hesitate to contact us.