A taxable person is required to file a Recapitulative Statement when engaging in VAT-exempt Intra-Community Supplies and when supplying services that take place in the territory of another EU Member State for which VAT is payable solely by the recipient (except for services which are VAT exempt in the Member State where the transaction takes place). A Recapitulative Statement is required to be filed by not later than the 15th day of the month following the end of each calendar quarter, unless the taxable person engages in VAT-exempt Intra-Community Supplies which exceed €50,000 per quarter, in which case Recapitulative Statements need to be filed monthly.
Historically, at law, failure to file a Recapitulative Statement attracted an administrative penalty of €10 for every month or part thereof that elapses from the date by when the Recapitulative Statement ought to have been filed and when the Recapitulative Statement is actually filed. This penalty was capped at €120 per Recapitulative Statement. With effect from 4th April 2023, the administrative penalties associated with the non-filing of a Recapitulative Statement have increased to €50 for every month or part thereof that elapses from the date by which the Recap Statement should have been furnished, capped at €600 per Recapitulative Statement.
Although the legally higher administrative penalty came into effect in April 2023, with a view to encouraging voluntary compliance with the provisions of the VAT Act, the CfR is allowing a one-time concession on the imposition of such administrative penalties if Recapitulative Statements due to be filed by or before 15th September 2023 are filed by the said date. Taxpayers that fail to regularize their positions by the said date will incur administrative penalties for late filing of Recapitulative Statements as follows:
- For Recapitulative Statements that were due to be filed on 15th April 2023 or at a later date, the new penalty of €50 per month capped at €600 will apply. The calculation of this penalty will depend on the date by when the Recapitulative Statement ought to have been filed;
- For Recapitulative Statements which were due to be filed by 15th March 2023 or before, the new penalty of €50 per month will apply for every month or part thereof that elapses from 15th April 2023 until the date when the Recapitulative Statement is filed. The administrative penalty will in all cases be capped at €600.
While the obligation for the filing of Recapitulative Statements has been with us since 2010, there are still situations where taxpayers are unaware of their obligation to file Recapitulative Statements or there are taxpayers that for specific reasons fail to file Recapitulative Statements in a timely manner.
As a result of the increase in administrative penalties, taxpayers that have not submitted past Recapitulative Statements and taxpayers that in the future fail to submit such Recapitulative Statements will face more onerous administrative penalties. Given that taxpayers have up to 15th September to regularise their positions, it is opportune for taxpayers to revisit their income streams and re-assess whether they were required to file Recapitulative Statements in respect of their income streams and if so to regularise their position and to re-assess whether the manner in which past VAT returns were filed is in line with their Recapitulative Statement filing requirements.
For some taxpayers, this effort will coincide with their effort to regularise their Intrastat position. More information can be found on CfR Notice – Intrastat Declarations.
How can we help?
Our Indirect Tax team within KPMG has the relevant experience and expertise to assist taxpayers fulfill their on-going VAT compliance obligations and where necessary to assist taxpayers in regularising their VAT position. For taxpayers that prefer to retain the VAT compliance function in-house, KPMG can also assist through tax health checks and/or through the provision of ad-hoc assistance.