When do I have to submit the advance sales tax return?
September 1, 2023 | 50,00 EUR | answered by Lina Sauer
Dear tax consultant,
I am Alwin Schröder and have been running a small business in the sports equipment trading sector for some time. So far, I have not dealt intensively with the topic of value added tax, as I was not yet subject to VAT. However, my business has been developing well in the last few months and I have now exceeded the turnover threshold, making me subject to VAT.
I have heard that I now need to submit regular VAT returns, but I am unsure about the exact deadlines for submission. I definitely do not want to fall behind and risk possible fines or penalties.
Could you please explain to me by when I need to submit the VAT return and what consequences there are if I do not meet this deadline? Is there perhaps a way to make the submission of the VAT return easier, for example by using specialized software or services?
Thank you in advance for your help and advice.
Best regards,
Alwin Schröder
Dear Mr. Schröder,
Thank you for your inquiry regarding the advance VAT returns. It is good that you are seeking information to avoid missing deadlines and potential consequences.
As a VAT-registered entrepreneur, you are required to regularly submit advance VAT returns to the tax office. The advance VAT return is usually required monthly if your turnover in the previous year exceeded 7,500 euros. Otherwise, you can also submit quarterly returns. The exact deadlines for submitting the advance VAT return are usually the 10th of the following month in which the VAT was incurred. If you hire a tax advisor to prepare your advance VAT returns, these deadlines may vary.
It is important that you adhere to these deadlines, as late submission may result in interest on late payment or even sanctions. In case of late submission of the advance VAT return, the tax office may charge interest of 0.25% per month. In addition, fines and estimations of VAT may be imposed if you repeatedly fail to meet deadlines.
To facilitate the submission of the advance VAT return, you can use specialized software solutions that assist you in preparing and submitting the returns. These programs enable automated calculation of VAT and simplify the process of advance submission. Alternatively, you can also hire a tax advisor to prepare and submit the returns for you.
I hope this information is helpful and answers your question thoroughly. If you have any further questions, please feel free to contact me.
Best regards,
Lina Sauer
