How does the advance VAT return process work and by when must it be submitted?
May 20, 2024 | 50,00 EUR | answered by Quentin Reuter
Dear Sir or Madam,
I am Lina Fuchs and I operate a small online shop where I sell handmade products. So far, I have not delved deeply into the topic of sales tax, as I have primarily focused on producing my products. However, I have now realized that I need to submit a sales tax return, but I am unsure of how exactly this process works.
I have heard that the sales tax return must be submitted quarterly, but I am not sure of the exact deadline for submission. Additionally, I am wondering what information I need to include in the return and if there are specific deadlines to adhere to. Furthermore, I am unsure if I am exempt from sales tax as a small business owner or if I still need to remit it.
My main concern is that I do not want to risk any sanctions or penalties by submitting the sales tax return incorrectly or late. Therefore, I would like to delve deeper into the topic and ensure that I follow all necessary steps correctly.
Could you please explain to me how the sales tax return process works, the deadline for submission, and the information I need to provide? Are there any specific deadlines to be aware of, and am I exempt from sales tax as a small business owner? I would be very grateful for a detailed explanation and any possible solutions.
Yours sincerely,
Lina Fuchs
Dear Mrs. Fuchs,
Thank you for your inquiry regarding the advance VAT return for your small online shop. I am happy to explain to you the process and necessary steps that you, as a business owner, must follow.
The advance VAT return is usually submitted quarterly. The exact deadlines may vary depending on the state, but typically the submission deadline for the advance return is on the 10th of the following month after the end of the advance return period. This means that if your advance return period is the 1st quarter, you would need to submit the advance VAT return by April 10th.
In the advance return, you must declare the sales you have made during the advance return period. This means you must declare the taxable sales (i.e. the sales on which VAT is charged) as well as the VAT. Additionally, you must declare the input tax that you have paid during this period. The difference between VAT and input tax will either result in a tax liability that you must pay to the tax office or a refund that you will receive.
As a small business owner, you may be exempt from VAT under certain conditions. In order to qualify, you must have made a turnover of no more than €22,000 in the previous year and expect a turnover of no more than €50,000 in the current year. In this case, you are exempt from VAT and do not need to submit an advance VAT return. However, you should make sure to include a note about the small business exemption on your invoices.
To avoid sanctions or penalties, it is important that you submit the advance VAT return on time and correctly. If you are unsure, I recommend seeking assistance from a tax advisor who can help you with the correct process.
I hope that my explanations have been helpful and that you now have a better understanding of the advance VAT return process. If you have any further questions, please feel free to contact me.
Best regards,
Quentin Reuter
