From July 1, 2025, new rules for VAT payment flexibility will be implemented, covering the VAT period from May 2025 onwards, as announced by the Tax Authority (AT).
In a social media update on Tuesday, the AT detailed the deadlines for joining the payment flexibility plans as follows:
- “The deadline for joining the payment flexibility plans will coincide with the deadline for submitting the VAT return. The deadline for payment of installments remains unchanged; the first installment must be paid by the payment deadline in question”;
- “Direct Debit: Joining direct debit for the payment flexibility plans will now automatically include the 1st installment”.
In the same update, the Finance Ministry provided three additional notes:
- “If you are enrolled in Direct Debit under the purpose ‘VAT- Periodic Declarations’ or ‘VAT’, ensure that at the time of submitting the periodic declaration for the period, the option for payment flexibility/credit utilization is duly indicated;
- To make any changes to the payment flexibility plan, you must cancel the plan and submit a new one on the Finance Portal by the deadline for the VAT return submission;
- The authorization for direct debit for payment flexibility is done on a plan-by-plan basis, at the time of joining the plan”.
What are the conditions for joining the payment flexibility plan?
According to the information on the Finance Portal, “to join the payment flexibility, the taxpayer must have their tax and contributory status regularized, and must be a Taxable Person under the obligations outlined in Article 27(1) of the VAT Code (monthly and quarterly regime)—applicable to all taxable persons without conditions regarding size, billing, turnover, or sector of activity”.
Furthermore, “if conducting an isolated act or participating in other VAT regimes—for example, the OSS or IOSS regimes—you cannot benefit from the payment flexibility”.
“Requests for payment flexibility can be made by Taxpayers or their Certified Accountants, via authentication, up to the deadline for submitting the periodic declaration, electronically through the Finance Portal at: – Payments > Payment Flexibility > Join VAT > (Then select the tax obligation, period, and amount to pay)”, as stated on the portal.
How are installment payments made?
According to the AT, here is what you need to know: “If you have NOT joined Direct Debit for the flexibility plan, you must pay the 1st installment using the reference from the submitted declaration. For subsequent installments, obtain the respective references via the Finance Portal by consulting the plans at: – Payments > Payment Flexibility > Consult Plan/ Pay”.
Note that “using references different from those in the payment flexibility plan will lead to its interruption and the subsequent issuance of a debt certificate”.
“If you join Direct Debit for the payment flexibility plan, it will apply to ALL installments of the plan. The IBAN included for direct debit must be the one registered with the Tax and Customs Authority”.
