Debt warehousing

Repayment of warehouse debt

In October 2022, Revenue extended the date for the repayment of warehoused debt from 1 January 2023 to 1 May 2024.

On 1 May 2024, customers are expected to either:

• repay their warehoused debt in full
• or
• enter into a payment arrangement to repay the debt over an agreed period of time.

The reduced 3% interest rate began to accrue on your warehoused debt from:

• 1 January 2023
• or
• 1 May 2023, for extended warehoused debt.

Note

Interest accrues on warehoused debt from the above dates until the date of payment. Where customers can make payments in advance of 1 May 2024, this will reduce the total interest costs of their warehoused debt.

Payment options

There are a number of payment options available for the repayment of warehoused debt depending on circumstances and debt outstanding, as outlined below.

1. Pay now in full, or in part, through online payment channels

The advantages of this payment method are:

• it is suitable if there are low value debts outstanding
• and
• it reduces interest costs.

2. Commence payments now via a Phased Payment Arrangement (PPA)

The advantages of this payment method are:

• there is a minimal down-payment required to activate the PPA
• and
• there is a 3% interest rate from 1 January 2023 (or 1 May 2023 for extended warehouse) for the duration of the arrangement.

3. Agree a payment arrangement now with monthly payments to commence from 1 May 2024

The advantages of this payment method are:

• there is a minimal down-payment required to activate the PPA
• you can apply for a payment break until 1 May 2024
• and
• notification of first payment will issue 14 days in advance of May 2024.

Note

Once the PPA is approved by Revenue, customers will need to apply for a payment break on Revenue Online Service (ROS). Customers must apply for a payment break within 14 days of the approval of the PPA. 

4. Apply for a PPA consolidation now if you have an existing PPA for other taxes

The advantages of this payment method are:

• it includes warehoused and non-warehoused debt at the applicable interest rate on the one payment arrangement
• and
• it eases administration.

5. Request to offset repayable claims such as Value-Added Tax (VAT) against warehouse debt on an ongoing basis

Where a customer is due a refund, they may request that the refund be offset against the warehoused debt. This will reduce the interest applied to the warehoused debt.

Benefits of engaging early

There are several benefits to engaging with Revenue early in relation to the repayment of warehoused debt such as:

• interest savings, as 3% interest is already accruing since 1 January 2023 for most warehoused debt
• providing certainty for businesses in their financial position and allowing future cashflow to be planned
• allowing time to agree the best repayment solutions appropriate to the business
• payment arrangements that can be activated now with a minimal down-payment and monthly repayments commencing later in May 2024
• and
• if circumstances change in the interim, the payment schedules can be adjusted.

Applying for a PPA through Revenue Online Service (ROS)

To apply for a PPA through ROS, follow the steps below: 

• Sign into ROS
• and
• Click on the ‘Phased Payment Arrangement (PPA)’ link from the ‘Other Services’ section.

Please note that all tax returns must be filed before applying for a PPA.

For further information, please see How to apply for a PPA.