When does Revenue pay interest?

Interest on refunds of tax by Revenue

Revenue may pay interest on refunds of Value-Added Tax (VAT) to you, where:

• there is a mistaken assumption in the operation of the tax made by Revenue
• there is a delay of more than 93 days in processing a fully completed claim.

The rate of interest is 0.011% per day, or part of a day.

What is a mistaken assumption in the operation of the tax by Revenue?

This could arise from:

• a decision by the courts or the Tax Appeals Commission
• a change in interpretation made by Revenue.

Where a mistaken assumption in the operation of the tax is made by Revenue, the interest is calculated from:

• in the case of an overpaid amount, from the date of receipt of that amount
• in the case of any other refundable amount, either from:
  • the 19th of the month following the taxable period in which the claimant would have been entitled to receive the amount
  • or
  • where a VAT return is required, from the date of its receipt, to the date the amount is repaid by Revenue.

Administrative delays

Revenue is also obliged to pay interest if a VAT repayment has not been made after the expiry of 93 days from the date of receipt of a valid claim for repayment.

Interest will be paid from the date of expiry of the 93 days to the date the repayment is made. This excludes the time period that correspondence is ongoing with the taxable person concerning the claim.