What happens if I submit the sales tax return late?
March 5, 2022 | 50,00 EUR | answered by Emma Wagner
Dear tax advisor,
I have a question regarding my VAT return. Unfortunately, I was not able to submit it on time and I am now wondering what consequences this may have for me.
The background is that I am a small business owner and normally have to submit my VAT returns quarterly. However, due to being very busy at the moment, I missed the deadline for submitting my VAT return. I am now worried that I may face penalties or fines as a result.
Could you please explain to me what could happen if I submit the VAT return late? Are there any ways to resolve the situation and avoid potential penalties? I would be very grateful for your help and advice on this matter.
Thank you in advance.
Sincerely,
Wilhelm Kraft
Dear Mr. Kraft,
Thank you for your question regarding your delayed sales tax return as a small business owner. It is understandable that you are concerned about the possible consequences this may have for you. As a tax advisor, I would like to help you and explain what could happen in such a situation.
It is important to know that timely submission of the sales tax return is very important as it is a legal obligation. If you miss this deadline, it can lead to various consequences. Firstly, you may face a late filing penalty, which is calculated based on the amount submitted late and can be up to 10% of the determined tax.
Additionally, you may also incur a late payment penalty if you are late in paying the sales tax. This currently amounts to 1% for each month of delay. The tax authorities may also make estimates and assess your tax liability if you do not submit the return on time, which can result in higher tax payments.
To clarify the situation and avoid any penalties, it is advisable to submit the overdue sales tax return as soon as possible. It is best to contact the relevant tax office and explain your situation. Authorities are often lenient if you disclose your reasons for the delay and show cooperation. In some cases, you may also apply for deferral or installment payment of the due amounts.
It is important that you keep an eye on the deadlines for the sales tax return in the future and seek assistance from a tax advisor if necessary to avoid such situations. If you have any further questions or need assistance, I am happy to help.
Best regards,
Emma Wagner, Tax Advisor
