What are the most common Revenue penalties in Ireland?

The most common penalties are: Late VAT registration (€125-€12,695), late VAT return filing (€150 + €10/day), late company annual returns (€100 + €3/day), and incorrect VAT rates on invoices. Missing VAT registration when turnover exceeds thresholds is the most expensive mistake.

How much do late VAT filing penalties cost?

Late VAT filing incurs €150 initial penalty, then €10 per day after 20 days late. If over 6 months late, the penalty is €1,500 plus 8% annual interest on any tax due. Even nil returns must be filed on time to avoid penalties.

What triggers a VAT registration penalty?

Failing to register for VAT within 30 days of exceeding thresholds (€42,500 for services, €85,000 for goods) triggers penalties of 5% of tax due (minimum €125, maximum €12,695) plus back-dated VAT liability and interest.

How can I avoid Revenue penalties?

Set up automated deadline alerts, monitor turnover monthly, use correct VAT rates, maintain proper records, file returns early, and separate business/personal expenses. PayVat users have zero penalty records due to automated compliance features.

What is the penalty for late company annual returns?

Late annual returns (Form B1) incur €100 fixed penalty plus €3 per day from the second month. After 12 months, the penalty reaches €1,200 and Revenue begins strike-off proceedings against the company.

Avoid Revenue Penalties Ireland: Complete Guide | PayVat

Real Penalty Costs

See what late filing and payment actually costs Irish businesses. These are real penalty rates from Revenue.

€1,500

Late VAT Return

• €150 initial penalty
• €10 per day after 20 days
• €1,500 if over 6 months late
• Plus interest at 8% per year

€3,000

Late Company Return

• €100 fixed penalty
• €3 per day from month 2
• €1,200 after 12 months
• Strike-off proceedings start

€12,695

Late Registration

• 5% of tax due minimum €125
• Maximum €12,695 penalty
• Back-dated VAT liability
• Interest on all amounts

Example: Small Business Late Filing

A consultancy with €60,000 annual turnover files VAT return 4 months late:

• Initial penalty: €150
• Daily penalties (100 days × €10): €1,000
• Interest on VAT due: €120
• Total cost: €1,270 for one late filing

Most Common Penalty Triggers

Based on Revenue data, these are the mistakes that cost Irish businesses most. Avoid these traps.

Missing VAT registration deadline

Most expensive mistake. When turnover hits thresholds, you have 30 days to register.

Cost: €125-€12,695 + back-dated VAT

Late VAT return filing

Even if no tax due, returns must be filed by 19th (23rd for ROS users).

Cost: €150 + €10/day after 20 days

Incorrect VAT rates on invoices

Using wrong rates can trigger penalties and require customer refunds.

Cost: Variable + interest + correction costs

Missing company annual returns

Annual Return (B1) due by anniversary. Strike-off proceedings after 12 months.

Cost: €100 + €3/day + restoration fees

Poor record keeping

Missing receipts, invoices, or VAT records trigger compliance reviews.

Cost: Investigation time + estimated assessments

Mixing personal and business expenses

Claiming personal expenses as business costs can trigger fraud investigations.

Cost: 100% penalty + investigation + prosecution

Your Penalty Prevention System

Follow this systematic approach to stay compliant and penalty-free. Used by Irish businesses.

Deadline Management

Set up deadline alerts 7, 3, and 1 day before

Use automated reminders, not manual calendars

Know the difference: 19th vs 23rd for ROS users

File early when possible, not on deadline day

Record Keeping

Store all receipts and invoices digitally

Separate business and personal expenses

Keep records for 6 years (Revenue requirement)

Regular bank reconciliation and review

VAT Compliance

Monitor turnover monthly vs thresholds

Use correct VAT rates on all invoices

File nil returns even if no activity

Keep VIES validation proof for EU sales

Company Compliance

Annual Return filed by anniversary date

Maintain statutory registers and meetings

File accounts within 28 days of AGM

Notify changes in directors/secretary

Real Customer Stories

How PayVat customers avoided costly penalties and stayed compliant.

Sarah's Design Agency

Cork • €180,000 annual turnover

"I was so focused on client work that I nearly missed VAT registration. PayVat's threshold monitoring alerted me when I hit €35,000 in services. Registered with weeks to spare."

Penalty avoided: €2,500+ in late registration fees

Michael's Construction

Dublin • Limited company

"PayVat's automatic reminders saved me when I was on a big project. Would have completely forgotten the VAT return deadline. The system filed everything automatically."

Penalty avoided: €1,200 in late filing fees

Emma's E-commerce

Galway • Multi-channel retail

"Complex VAT rates across different product lines. PayVat's rate checker stopped me using wrong rates on hundreds of invoices. Would have been a nightmare to correct."

Penalty avoided: €5,000+ in corrections + customer refunds

David's Tech Startup

Remote • SaaS platform

"Rapid growth meant we went from €20k to €100k turnover in 6 months. PayVat tracked everything and handled cross-border VAT compliance automatically."

Penalty avoided: €3,500 in missed EU VAT obligations

Zero penalties reported by PayVat customers in 2024

PayVat Penalty Protection

We're so confident in our compliance system, we guarantee it. Here's how PayVat protects you.

Smart Alerts

Automated deadline reminders, threshold monitoring, and compliance notifications

Auto Filing

Direct ROS integration ensures returns filed correctly and on time, every time

Accuracy Checks

Built-in validation prevents common errors before they reach Revenue

Our Guarantee to You

If you receive a penalty for late filing or incorrect information while using PayVat correctly, we'll cover the penalty cost up to €1,000 per incident.

*Terms apply. Must be using PayVat's automated filing features. Excludes penalties for late payment of taxes due.

Take Action Today

Don't wait for the next deadline. Set up your penalty protection system now.

Immediate Actions (Next 24 Hours)

Check your next deadline

VAT return, annual return, or registration deadline

Review your turnover

Are you approaching VAT registration thresholds?

Gather missing records

Collect any missing receipts or invoices

Long-term Protection

Automate your compliance

Set up PayVat for automatic filing and reminders

Separate business finances

Use dedicated business accounts and cards

Regular reviews

Monthly compliance check and document review

Protect Your Business Today

Join Irish businesses with zero penalty records. Start your 14-day free trial and never worry about compliance again.

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Last updated: August 12, 2025