Extension of Remission Scheme of interest and penalties with respect to VAT
Legal Notice 75 of 2015 was recently published, which extends the scope of the Remission of Interest Rules of 2014 to cover remission of Administrative Penalties as well. Through the Remission Rules, the Commissioner may, at his discretion, remit wholly or in part any interest and administrative penalties incurred by VAT-registered persons for the late payment of the VAT due or for other defaults or omissions arising from but not limited to, the incorrect submission of VAT returns/VAT forms/VAT declarations, the failure to submitting such documents and late registration. The interest imposed on the late payment of VAT is currently set at the rate of 0.54% per month or part thereof. The extent of the administrative penalties is dependent on the nature of the default or omission. The remission of interest and penalties is subject to the satisfaction of the Commissioner that the default was due to a reasonable excuse. In exercising his discretion, the Commissioner may impose any requirements that he may consider appropriate and the remission would be conditional on the fulfillment of such requirements.The Remission Scheme is not bound by any deadlines. Should you require further information or clarification in respect of the aforesaid, or to discuss any other VAT matter, kindly contact us.