Revenue Warehousing of tax debts for Covid affected businesses
by Dave O'Brien

In May 2020 Revenue issued guidance on the Debt Warehouse Scheme, where they confirmed support will be provided to both SME businesses (automatically) and larger businesses (on request) who experience cashflow and trading difficulties arising from the impacts of COVID-19. Revenue further defined an SME business as “a business with an annual turnover of less than €3 million who is not dealt with by either Revenue’s Large/Medium divisions.”


Businesses should be aware that Revenue are allowing a warehousing of VAT and PAYE liabilities for the period where trade is restricted and for two months after returning to normal trading. For most companies restricted trading will cease by 30 June, therefore the debt warehousing will cease for most by the end of August. If you are looking to extend the debt warehousing beyond 31 August it is essential you engage with Revenue.

The debt will be warehoused for 12 months after the cessation of the debt warehousing period. For most, the 12 months will cease on 31 August 2021. No interest will be charged on this debt if paid within the 12 months. If entering into an instalment arrangement after the 12-month period ends then a lower interest rate of 3% will be charged.


There are some important aspects of this deferral of tax debts:

  • Companies will only qualify for this debt warehousing if they file their relevant tax returns on time. No filing of returns will mean companies will cease to qualify for this deferral of tax payments.


  • Companies tax clearance certificates will not be affected.


  • Refunds of other taxes will be paid out, irrespective of whether a business owes VAT/PAYE.


  • The deferral applies automatically to SME businesses. However if your business is managed by either the Large Cases Division or the Medium Enterprises Division (even if an SME) then it does not apply automatically and the business must contact the Collector General to request a similar type of arrangement to that available to the SME sector. 

If you have any questions on the above please do not hesitate to contact us here in Quintas and we will be happy to help.




Dave O’Brien