How does the advance VAT return work?
August 6, 2023 | 40,00 EUR | answered by Anna Richter
Dear tax lawyer,
My name is Erwin Voss and I operate a small sole proprietorship in the IT services sector. In the past, I have always prepared my VAT return independently, but lately I have been encountering more and more difficulties with it. I am unsure if I have entered all relevant information correctly and if I may have made mistakes that could lead to errors in my tax return.
I understand that the VAT return is meant to report the VAT I have collected during the reporting period to the tax authorities. However, I am unsure of how to correctly calculate the VAT and include it in the return. Additionally, I am unsure of what information I need to provide and which documents I should use to calculate the VAT.
My concerns are that I may lose track of my VAT payments and could potentially face financial problems as a result. I want to ensure that I submit my VAT return correctly and on time to avoid any penalties.
Could you please explain to me how the VAT return process works? What information do I need to provide and which documents should I use for the calculations? Are there any tools or programs that could assist me in preparing my VAT return?
Thank you in advance for your assistance.
Sincerely,
Erwin Voss
Dear Mr. Voss,
Thank you for your inquiry regarding the sales tax pre-registration for your sole proprietorship in the field of IT services. It is understandable that the correct preparation and submission of the sales tax pre-registration is of great importance to you as a business owner in order to avoid potential errors and resulting financial problems.
The sales tax pre-registration is used to report the sales tax collected during the pre-registration period to the tax office. As a business owner, you must calculate the sales tax due on your sales and report it in the pre-registration. It is important to note that you calculate the sales tax for the services you provide, not for your expenses.
In order to calculate the sales tax correctly, you should apply the sales tax rates (currently 19% or 7%) to the services you provide. The information you need to provide in the sales tax pre-registration includes your sales, input tax amounts, the total sales tax amount, and any pre-registration periods in which no sales were made.
You can use various documents, such as invoices, receipts, or booking records, to calculate the sales tax. It is important that you keep your records properly and have all relevant information available for the sales tax pre-registration.
To assist you in preparing the sales tax pre-registration, there are various tools and programs available that can help you make a simple and accurate calculation. These programs can help you record your sales and expenses, calculate the sales tax, and electronically submit the pre-registration to the tax office.
If you have any uncertainties or questions regarding the sales tax pre-registration, it is advisable to consult an experienced tax advisor or tax lawyer to avoid potential errors and professionally handle your tax matters.
I hope this information is helpful to you and I am available to answer any further questions you may have.
Best regards,
Anna Richter
Tax lawyer
