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The VAT deferral scheme (COVID) 2020, penalties for VAT registered traders who have not paid deferred VAT or agreed a Time to Pay plan

Friday, 16 July 2021

As at the 30th June 2021 the majority of VAT registered traders who deferred paying their VAT in 2020 have now either paid or agreed a Time to Pay plan with the Isle of Man Treasury. There are still a small number of taxpayers who despite reminders have chosen not to engage with the Treasury to agree a way forward to meet their VAT liabilities, and from the 1st July 2021 these outstanding liabilities are considered debts and collection activity will commence to collect these outstanding monies. A new penalty of 5% of the outstanding liability is being introduced specifically to deal with VAT registered traders who have not paid deferred VAT or agreed a Time to Pay plan.

The Treasury encourages anyone who is yet to pay the deferred VAT or make arrangements to pay to do so as soon as possible. 

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