New VAT Late-Compliance Penalties Effective January 2026: Key Rules and Implications for Businesses

• From January 1, 2026, new late-compliance penalties for VAT apply, covering late-filing and late-payment, each up to SRD 10,000 per tax period.
• VAT returns and payments are due by the 15th of each month after the tax period; missing these deadlines triggers penalties.
• Late-filing penalties are based on the length of delay, rounded up to whole months, with a maximum of SRD 10,000 for delays over 4 months.
• Late-payment penalties are 50% of the outstanding VAT, capped at SRD 10,000.
• Both penalties can be imposed together, and failure to file a return automatically triggers both; penalties may be reconsidered upon objection, and are deductible for income tax purposes.

Source: hbnlawtax.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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