Farmers and agri-contractors should be aware that if they import certain concrete products and do not pay the new concrete levy on or before the due date it will be subject to interest on a daily basis.
That is according to Revenue which has detailed that if the new Defective Concrete Products Levy (DCPL) is not paid when required “interest accrues from the date the levy payment is due until the amount is paid in full”.
“The rate of interest that applies to unpaid DCPL is 0.0219% per day, or part of a day,” it outlined.
The DCPL is scheduled to come into effect on September 1, 2023 and will apply to the “first supply” of certain concrete products.
The levy, which will operate on a self-assessment basis, is applied at the rate of 5% of the “open market value” of the concrete product.
The chargeable person – typically the person or business that purchases the product – is accountable for and liable to pay the levy.
This person or business must also register with and submit returns to Revenue for the purposes of the levy, the accounting periods for the new levy will be:
- September 1, 2023 to December 31, 2023;
- January 1, 2024 to June 30, 2024;
- July 1, 2024 to December 31, 2024.
According to Revenue if for example a farmer plans to buy concrete from outside of the state, such as Northern Ireland that farmer is a “chargeable person” who is liable to pay the 5% levy.
It has also advised that if a farmer makes multiple orders for concrete from Northern Ireland they are liable for the new levy on each order.
But it has also highlighted that the new concrete levy only applies on the “first chargeable supply” of the concrete product.
Concrete levy
Revenue said that if a farmer purchases 1,500 concrete blocks from a supplier in Northern Ireland and uses those blocks in the course of their business, then this farmer is liable to the 5 % DCPL levy on this transaction.
But it also outlined that if this farmer then sells on 500 of those blocks to another farmer the DCPL has already applied to those 500.
However if the first farmer decides to buy another consignment of 1,000 concrete blocks from the same supplier the following week they would again be liable for the DCPL on that second purchase also.
According to Revenue a number of penalty charges may also apply in relation to the DCPL if the chargeable person fails to meet all of the requirements of the new levy from a €500 to €3,000 fine for failing to keep proper documentation or records.
There is also a maximum fine of €4,000 that may be applied if a person fails to pay the levy on the correct date.