Important actions you should take
Making contact with IRD is the most important action you should take, but you should also do the following as a matter of urgency:
- Submit your VAT return on time, even if you can't pay the VAT. If you don't, you could be liable to additional financial penalties.
- Any penalty is calculated on the amount still outstanding at the due date, so even if you can't pay the full amount on time, pay as much as you can manage. This will reduce the penalty and could even stop it altogether.
To avoid getting into this situation again, keep proper books and records at all times and start preparing you return before the deadline.
Failing to pay your VAT on time is a very serious matter - it's not just a question of being charged interest. You could face financial penalties, court action or even bankruptcy.